Gut Call On Horizon Global Corporation (HZN): Now It’s Really Down Too Much

Horizon Global Corporation (NYSE:HZN) is one of the hottest stocks trading today on the U.S. Markets as the company shares are 10.51% or 0.415 points lower from last closing price of $3.95, reaching $3.535 at last check. Any clue why there is so much of action in the HZN stock? The share price has dropped in 3 of the last 5 days and is up 76.34% over the past week. It will be exciting to see whether the stock manages to continue decreasing 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 13,466 shares, and in total 144566 shares valued at $511041 were seen changing hands compared with 131100 shares valued at $517845 recorded at the previous session. You should take into consideration that a greater volume on lower prices causes the situation where nobody wants to continue with their long position and wants to exit from the HZN stock.

Horizon Global Corporation (HZN) shares have notched a 3-month gain of about 76.34%, but has still advanced 176.22% year to date. By comparison, the stock sank -42% over the past 12 months, while it jumped 13.83% over the 1 month. The company’s market cap is around $82.44M, with its short interest ratio standing at 15.71%.

In the current trading session for HZN, the stock witnessed two major price actions, it rose to a high of $4 and was down as much as $3.4 at one point. The high recorded is very low when compared to their 52-week high which is $1.34. The 52-week high is now at -58.71 distance from current price. Their recent low of $8.5 represents a 161.94% 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 HZN is $2.75, 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 Horizon Global Corporation earned $-6.93 per share in the trailing 12 months and has a P/E ratio of -0.51. 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 18.1 and lower compared to the sector’s average of 19.34. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. HZN also has P/S multiple of 0.09. 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 1.52x.

The company recorded an interesting insider purchase transaction by the Director on May 15, 2019. A Securities and Exchanges Commission filings show that Frederick A Henderson bought a total of 10,000 HZN shares that day for a sum of around $36,000. The filings show that the insider stake has now grown to 59,199 shares, currently worth $209,268. Horizon Global Corporation (HZN) insiders have acquired 561,484 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to shares. In total, individual insiders traded 561,484 shares in the business, which makes up 65.272% of 860,221 shares that were traded over a year. In the past 12 months, insiders have purchased 860,221 shares while the seller parted with shares.

HZN‘s last price was down -3.4% as compared to the average trading price of 50 days recorded at $3.66 while enlarging the period to 200 trading days, the average closing price was $3.24. At present, there are 20.87 million in the total number of common shares owned by the public and among those 20.6 million shares have been available to trade. The percentage of shares being held by the company management was 5.9% while institutions stake was 55.3%. The company has generated positive returns on equity over the last 12 months (472.9%). It managed to keep its gross profit margin at 16.3% over the past 12 months.

When assessing the full upside of the HZN stock, there is another set of technicals that should be looked into and considered. Its -12.97% decline from moving average of $4.06 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.26 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more 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 Horizon Global Corporation — 0 analysts rate the stock as a buy with another 0 rating it strong buy. There are 2 analysts who maintain a hold rating for the stock, with 1 giving it a sell rating. Analysts arrived at a 12-month price target of $3.6667 on shares of Horizon Global Corporation (NYSE:HZN), which corresponds to 3.29% upside potential than its current market price of $3.535 and implies potential despite the recent drop in the price. However, their current target price has fallen from $3.6667 a month ago and is down handily from the consensus target of $7 a quarter ago.

In the last five years, the EPS of the company has been roughly -1.98%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 2.7%. The revenue of the company has risen at an average annualized rate of about 7.6 over the last five years. The company recently recorded a drop of -3.3%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards HZN stock. Adirondack Research & Management Inc. trimmed position in the company after it dumped -1% or 441,665 shares of its common stock. The hedge fund now owns 437,248 shares worth $1,545,672, SEC documents show. Charles Schwab Investment Management Inc. shored up assets in the stock as 90732.41 shares have been purchased, increasing its stake by 29.3% to 117,317 shares which are currently valued at $414,716. In addition, Antara Capital LP recently reported that it now owns 370,839 shares making a total of $1,310,916 based on the recent price. This refelects a change of 29.8% in their ownership.