Diversified Restaurant Holdings, Inc. (NASDAQ:SAUC) is one of the hottest stocks trading today on the U.S. Markets as the company shares are 4.44% or 0.03 points lower from last closing price of $0.68, reaching $0.6498 at last check. Any clue why there is so much of action in the SAUC stock? The share price is losing for the third day in a row and has dropped in 3 of the last 5 days and is down -15% 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 -27,617 shares, and in total 102783 shares valued at $66788 were seen changing hands compared with 130400 shares valued at $88672 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 SAUC stock is near its bottom.
Diversified Restaurant Holdings, Inc. (SAUC) shares have notched a 3-month decline of about -15%, but has still tumbled -29.9% year to date. By comparison, the stock sank -51.08% over the past 12 months, while it jumped 16.78% over the 1 month. The company’s market cap is around $19.13M, with its short interest ratio standing at 0.04%.
In the current trading session for SAUC, the stock witnessed two major price actions, it rose to a high of $0.68 and was down as much as $0.57 at one point. The high recorded is very low when compared to their 52-week high which is $0.37. The 52-week high is now at -58.52 distance from current price. Their recent low of $1.55 represents a 72.85% 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 SAUC is $2, this is above 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 Diversified Restaurant Holdings, Inc. earned $-0.13 per share in the trailing 12 months and has a P/E ratio of -5. 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 31.75 and lower compared to the sector’s average of 36.33. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. SAUC also has P/S multiple of 0.12. 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 0.84x.
SAUC‘s last price was down -24.13% as compared to the average trading price of 50 days recorded at $0.86 while enlarging the period to 200 trading days, the average closing price was $0.64. At present, there are 28.13 million in the total number of common shares owned by the public and among those 17.76 million shares have been available to trade. The percentage of shares being held by the company management was 7.3% while institutions stake was 45.7%. The company has generated positive returns on equity over the last 12 months (21.3%). It managed to keep its gross profit margin at 71% over the past 12 months.
When assessing the full upside of the SAUC stock, there is another set of technicals that should be looked into and considered. Its 26.25% gain from moving average of $0.51 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 1.05 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.
In the last five years, the EPS of the company has been roughly 0%. 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 18%. The revenue of the company has risen at an average annualized rate of about 7.1 over the last five years. The company recently recorded an increase of 5.1%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards SAUC stock. Boston Partners trimmed position in the company after it dumped -8.9% or 631,863 shares of its common stock. The hedge fund now owns 575,627 shares worth $374,042, SEC documents show. Vanguard Group Inc. shored up assets in the stock as 339641.9 shares have been purchased, increasing its stake by 10.3% to 374,625 shares which are currently valued at $243,431. In addition, Poehling Capital Management LLC recently reported that it now owns 463,192 shares making a total of $300,982 based on the recent price. This refelects a change of 3.2% in their ownership.