Fred’s, Inc. (NASDAQ:FRED) could be one of the worst stocks that investors may not want to consider for their portfolio today as the company shares are trading 3.68% or 0.015 points down from last closing price of $0.41, reaching $0.3949 at last check. Any clue why there is so much of action in the FRED stock? The share price has dropped in 2 of the last 5 days and is down -87.53% 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 weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -163,292 shares, and in total 227208 shares valued at $89724 were seen changing hands compared with 390500 shares valued at $160105 recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the FRED stock is near its bottom.
Fred’s, Inc. (FRED) shares have notched a 3-month decline of about -87.53%, but has still tumbled -78.3% year to date. By comparison, the stock sank -77.22% over the past 12 months, while it slipped -30.49% over the 1 month. The company’s market cap is around $15.59M, with its short interest ratio standing at 3.53%.
In the current trading session for FRED, the stock witnessed two major price actions, it rose to a high of $0.44 and was down as much as $0.3901 at one point. The high recorded is very low when compared to their 52-week high which is $0.38. The 52-week high is now at -89.08 distance from current price. Their recent low of $3.58 represents a 3.99% 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 FRED is $2, 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 Fred’s, Inc. earned $-3.76 per share in the trailing 12 months and has a P/E ratio of -0.11. 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 23.57 and lower compared to the sector’s average of 19.23. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. FRED also has P/S multiple of 0.01. 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 1.16x.
The company recorded an interesting insider purchase transaction by the Director on Dec 26, 2018. A Securities and Exchanges Commission filings show that Thomas E Zacharias bought a total of 18,000 FRED shares that day for a sum of around $32,220. The filings show that the insider stake has now grown to 81,452 shares, currently worth $32,165. Fred’s, Inc. (FRED) insiders have acquired 309,766 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 309,766 shares in the business, which makes up 6.916% of 4,479,163 shares that were traded over a year. In the past 12 months, insiders have purchased 4,479,163 shares while the seller parted with shares.
FRED‘s last price was down -82.22% as compared to the average trading price of 50 days recorded at $2.22 while enlarging the period to 200 trading days, the average closing price was $1.04. At present, there are 38.01 million in the total number of common shares owned by the public and among those 34.88 million shares have been available to trade. The percentage of shares being held by the company management was 1.4% while institutions stake was 69%. The company has generated negative returns on equity over the last 12 months (-9.3%). It managed to keep its gross profit margin at 25.4% over the past 12 months.
When assessing the full upside of the FRED stock, there is another set of technicals that should be looked into and considered. Its -9.53% decline from moving average of $0.44 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.84 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 Fred’s, Inc. — 0 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 $2 on shares of Fred’s, Inc. (NASDAQ:FRED), which corresponds to 412.82% upside potential than its current market price of $0.3949 and implies potential despite the recent drop in the price. However, their current target price has fallen from $2 a month ago and is down handily from the consensus target of $2 a quarter ago.
In the last five years, the EPS of the company has been roughly -48.8%. 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 retreated at an average annualized rate of about -8.1 over the last five years. The company recently recorded a drop of -17.2%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards FRED stock. Jane Street Group LLC added position in the company after it grew 50% or 11,681 shares of its common stock. The hedge fund now owns 17,521 shares worth $6,919, SEC documents show. Morgan Stanley shored up assets in the stock as 264390.8 shares have been purchased, increasing its stake by 49.2% to 394,471 shares which are currently valued at $155,777. In addition, Renaissance Technologies LLC recently reported that it now owns 800,945 shares making a total of $316,293 based on the recent price. This refelects a change of 20.9% in their ownership.