Can SMART Global Holdings Inc. (SGH) Add Value To Your Portfolio?

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As of Wednesday close, SMART Global Holdings Inc.’s (NASDAQ:SGH) stock was up $0.25, moving up 1.48 percent to $17.14. The average number of shares traded per day over the past five days has been 237,360 shares. 2 times new highs have been achieved over the past 5 days, with a $0.43 gain in that time frame. In the last twenty days, the average volume was 407,045, while in the previous 50 days, it was 605,546.

Since last month, SGH stock rose 26.22%. Shares of the company fell to $13.08 on 10/25/22, the lowest level in the past month. A 52-week high of $37.25 was reached on 01/03/22 after having rallying from a 52-week low of $12.04. Since the beginning of this year, SGH’s stock price has dropped by -51.71% or -$18.35, and marked a new high 1 time. However, the stock has declined by -53.99% since its 52-week high.


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SGH stock investors should be aware that SMART Global Holdings Inc. (SGH) stock had its last reported insider trading activity 9 days ago on Nov 15. Pellegrino Thierry, the SVP, Pres, IPS of the company, disposed of 8,426 shares for $17.23 on Nov 15. It resulted in a $145,161 divestment by the insider. HERSCHER PENNY sold 2,156 shares at an average price of $16.11 on Oct 03. The insider now owns 5,484 shares following the transaction. On Jul 26, SVP and CFO Rizvi Ken bought 4,250 shares at $17.85 apiece. The transaction was valued at $75,862.

Valuation Metrics

Right now, SMART Global Holdings Inc. (SGH) has a P/E ratio of about 13.79. The stock’s beta is 1.27. Besides these, the trailing price-to-sales (P/S) ratio of 0.46, the price-to-book (PB) ratio of 2.27, and the price-to-cash flow ratio of 12.53 may also be considered.

Financial Health

In the three months ended August 30, SMART Global Holdings Inc.’s quick ratio stood at 1.60, while its current ratio was 2.20, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending August 30 was 1.59, and the total debt-to-equity ratio was 1.62. On the profitability front, the trailing twelve-month gross margin is 24.90% percent. In the year ended August 30, operating margins totaled 6.30%. Based on annual data, SGH earned $453.22 million in gross profit and brought in $1.82 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 9.60%. Return on equity (ROE) for the past 12 months was 18.50%.

In SMART Global Holdings Inc.’s quarter-end financial report for August 30, it reported total debt of $591.39 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. SGH’s revenue fell -6.86% to $462.54 million during the quarter, while net income inched up to $437.7 million. While analysts expected SMART Global Holdings Inc. to report $0.65 quarterly earnings, the actual figure was $0.8 per share, beating the consensus estimate by 23.10%. The liabilities of SMART Global Holdings Inc. were 1.19 billion at the end of its most recent quarter ended August 30, and its total debt was $675.17 million.

Technical Picture

This quick technical analysis looks at SMART Global Holdings Inc.’s (SGH) price momentum. With a historical volatility rate of 41.27%, the RSI 9-day stood at 67.18% on 23 November.

With respect to its five-day moving average, the current SMART Global Holdings Inc. price is up by +2.57% percent or $0.43. At present, SGH shares trade +24.38% above its 20-day simple moving average and +1.72% percent above its 100-day simple moving average. However, the stock is currently trading approximately -4.99% below its SMA50 and -39.35% below its SMA200.

Stochastic coefficient K was 81.22% and Stochastic coefficient D was 80.82%, while ATR was 0.67. Given the Stochastic reading of 86.38% for the 14-day period, the RSI (14) reading has been calculated as 63.40%. As of today, the MACD Oscillator reading stands at -0.01, while the 14-day reading stands at 0.64.

Analyst Ratings

Needham reiterated its a Buy rating on SMART Global Holdings Inc. (NASDAQ: SGH) in a note to investors. The analysts firm has however raised their price target to $40, representing a possible 61.91% increase in the stock price. SMART Global Holdings Inc. (SGH) has been rated Buy by analysts. According to 0 brokerage firms, SGH is a sell, and 0 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate SMART Global Holdings Inc. stock as buy, with 5 recommending it as overweight.

With a median target price of $26.00, the current consensus forecast for the stock is $15.00 – $38.00. Based on these forecasts, analysts predict SMART Global Holdings Inc. (SGH) will achieve an average price target of $25.17.

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