Gut Call On Sprint Corporation (S): Now It’s Really Up Too Much

Sprint Corporation (NYSE:S) is one of the hottest stocks trading today on the U.S. Markets as the company shares are 2.94% or 0.2 points higher from last closing price of $6.81, reaching $7.01 at last check. Any clue why there is so much of action in the S stock? The share price is gaining for the third day in a row and has risen in 3 of the last 5 days and is up 8.79% 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 4,193,997 shares, and in total 29.559 million shares valued at $207.212 million were seen changing hands compared with 25.366 million shares valued at $172.739 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 S stock.

Sprint Corporation (S) shares have notched a 3-month gain of about 8.79%, but has still advanced 17.01% year to date. By comparison, the stock added 28.25% over the past 12 months, while it jumped 13.69% over the 1 month. The company’s market cap is around $27.31B, with its short interest ratio standing at 4.83%.

In the current trading session for S, the stock witnessed two major price actions, it rose to a high of $7.24 and was down as much as $6.73 at one point. The high recorded is very low when compared to their 52-week high which is $5.28. The 52-week high is now at -11.08 distance from current price. Their recent low of $7.9 represents a 33.05% 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 S is $6.24, 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 Sprint Corporation earned $-0.48 per share in the trailing 12 months and has a P/E ratio of -14.6. 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 19.22 and lower compared to the sector’s average of 20.87. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. S also has P/S multiple of 0.84. 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 1.39x.

The company recorded an interesting insider sale transaction by the Insider on May 28, 2019. A Securities and Exchanges Commission filings show that John Saw sold a total of 7,419 S shares that day for a sum of around $52,304. Sprint Corporation (S) insiders have acquired 2,190,672 shares in the stock within the past three months. In total, individual insiders traded 2,812,498 shares in the business, which makes up 57.989% of 4,850,084 shares that were traded over a year. In the past 12 months, insiders have purchased 3,510,986 shares while the seller parted with 1,339,098 shares.

S‘s last price was up 13.48% as compared to the average trading price of 50 days recorded at $6.18 while enlarging the period to 200 trading days, the average closing price was $6.2. At present, there are 4.01 billion in the total number of common shares owned by the public and among those 609.11 million shares have been available to trade. The percentage of shares being held by the company management was 0.3% while institutions stake was 13.8%. The company has generated negative returns on equity over the last 12 months (-7%). It managed to keep its gross profit margin at 60.2% over the past 12 months.

When assessing the full upside of the S stock, there is another set of technicals that should be looked into and considered. Its 2.36% gain from moving average of $6.85 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0.18 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 Sprint Corporation — 1 analysts rate the stock as a buy with another 0 rating it strong buy. There are 5 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 $5.3925 on shares of Sprint Corporation (NYSE:S), which corresponds to 23.07% downside potential than its current market price of $7.01 and implies potential despite the recent advance in the price. However, their current target price has fallen from $5.3925 a month ago and is down handily from the consensus target of $5.6875 a quarter ago.

In the last five years, the EPS of the company has been roughly -65.8%. Though the percentage looks disappointing, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by 0%. The revenue of the company has risen at an average annualized rate of about 30.5 over the last five years. The company recently recorded an increase of 4.4%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards S stock. IMS Capital Management trimmed position in the company after it dumped -13.4% or 16,572 shares of its common stock. The hedge fund now owns 14,351 shares worth $100,601, SEC documents show. B.S. Pension Fund Trustee Ltd acting for the British Steel Pension Fund cut assets in the stock as 32385.49 shares have been sold, reducing its stake by -11.8% to 28,564 shares which are currently valued at $200,234. In addition, OTA Financial Group L.P. recently reported that it now owns 286,142 shares making a total of $2,005,855 based on the recent price. This refelects a change of 36.6% in their ownership.