If you’re on the hunt for stocks to watch today, SMART Global Holdings, Inc. (NASDAQ:SGH) is a stock to give close attention to. The company shares are trading 3.76% or 0.68 points up from last closing price of $18.1, reaching $18.78 at last check. The SGH share price has risen in 3 of the last 5 days and is down -22.65% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 82,042 shares, and in total 223342 shares valued at $4.194 million were seen changing hands compared with 141300 shares valued at $2.558 million recorded at the previous session. You should take into consideration that a greater volume on higher prices causes bullish signal for the market. It shows the sentiment is in an uptrend and more and more traders want to enter in the SGH stock.
SMART Global Holdings, Inc. (SGH) shares have notched a 3-month decline of about -22.65%, but has still tumbled -39.06% year to date. By comparison, the stock sank -61.93% over the past 12 months, while it slipped -16.05% over the 1 month. The company’s market cap is around $411.59M, with its short interest ratio standing at 5.7%.
In the current trading session for SGH, the stock witnessed two major price actions, it rose to a high of $18.85 and was down as much as $17.53 at one point. The high recorded is very low when compared to their 52-week high which is $16.94. The 52-week high is now at -63.71 distance from current price. Their recent low of $51.63 represents a 10.64% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for SGH is $38.5, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of SMART Global Holdings, Inc. earned $4.52 per share in the trailing 12 months and has a P/E ratio of 4.15. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 7.88 and lower compared to the sector’s average of 12.92. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. SGH also has P/S multiple of 0.3. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 8.91x.
The company recorded an interesting insider sale transaction by the VP on May 20, 2019. A Securities and Exchanges Commission filings show that Bruce M Goldberg sold a total of 2,381 SGH shares that day for a sum of around $43,787. SMART Global Holdings, Inc. (SGH) insiders have acquired 144,458 shares in the stock within the past three months. In total, individual insiders traded 171,357 shares in the business, which makes up 24.754% of 692,232 shares that were traded over a year. In the past 12 months, insiders have purchased 164,566 shares while the seller parted with 527,666 shares.
SGH‘s last price was down -29.82% as compared to the average trading price of 50 days recorded at $26.76 while enlarging the period to 200 trading days, the average closing price was $20.56. At present, there are 22.74 million in the total number of common shares owned by the public and among those 13.02 million shares have been available to trade. The percentage of shares being held by the company management was 2.9% while institutions stake was 95.9%. The company has generated positive returns on equity over the last 12 months (50.6%). It managed to keep its gross profit margin at 21.5% over the past 12 months.
When assessing the full upside of the SGH stock, there is another set of technicals that should be looked into and considered. Its 1.13% gain from moving average of $18.57 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of SMART Global Holdings, Inc. — 4 analysts rate the stock as a buy with another 0 rating it strong buy. There are 1 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $41.6 on shares of SMART Global Holdings, Inc. (NASDAQ:SGH), which corresponds to 121.63% upside potential than its current market price of $18.78 and implies potential despite the recent advance in the price. However, their current target price has fallen from $41.6 a month ago and is down handily from the consensus target of $50.6 a quarter ago.
In the last five years, the EPS of the company has been roughly 32.5%. Though the percentage looks encouraging, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by -12.33%. The revenue of the company has risen at an average annualized rate of about 19.5 over the last five years. The company recently recorded a drop of -3.2%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards SGH stock. FMR LLC added position in the company after it grew 50% or 269,333 shares of its common stock. The hedge fund now owns 404,000 shares worth $7,587,120, SEC documents show. Jane Street Group LLC shored up assets in the stock as 10359.12 shares have been purchased, increasing its stake by 123.6% to 23,163 shares which are currently valued at $435,001. In addition, Crosslink Capital Inc. recently reported that it now owns 206,679 shares making a total of $3,881,432 based on the recent price. This refelects a change of 22.5% in their ownership.