Farfetch Limited (FTCH) Is A Stock You Should Watch


As of Wednesday close, Farfetch Limited’s (NYSE:FTCH) stock was up $0.54, moving up 7.40 percent to $7.84. The average number of shares traded per day over the past five days has been 15,607,300 shares. 1 time new highs have been achieved over the past 5 days, with a -$1.47 fall in that time frame. In the last twenty days, the average volume was 10,652,811, while in the previous 50 days, it was 9,194,518.

Since last month, FTCH stock retreated -5.08%. Shares of the company fell to $6.82 on 10/24/22, the lowest level in the past month. A 52-week high of $37.46 was reached on 01/03/22 after having rallying from a 52-week low of $6.52. Since the beginning of this year, FTCH’s stock price has dropped by -76.55% or -$25.59, and marked a new high 1 time. However, the stock has declined by -79.07% since its 52-week high.

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Valuation Metrics

Right now, Farfetch Limited (FTCH) has a P/E ratio of about 2.16. The stock’s beta is 2.80. Besides these, the trailing price-to-sales (P/S) ratio of 1.44, the price-to-book (PB) ratio of 4.08.

Financial Health

In the three months ended September 29, Farfetch Limited’s quick ratio stood at 1.10, while its current ratio was 1.40, 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 September 29 was 0.98, and the total debt-to-equity ratio was 1.02. On the profitability front, the trailing twelve-month gross margin is 45.40% percent. In the year ended September 29, operating margins totaled -27.70%. Based on annual data, FTCH earned $1.02 billion in gross profit and brought in $2.26 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 -58.50%. Return on equity (ROE) for the past 12 months was 95.30%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. FTCH’s revenue rose 25.82% during the quarter, while net income inched up to $2.26 billion. While analysts expected Farfetch Limited to report -$0.28 quarterly earnings, the actual figure was -$0.24 per share, beating the consensus estimate by 14.30%. During the quarter, the company generated -$133.73 million in EBITDA. The liabilities of Farfetch Limited were 2.53 billion at the end of its most recent quarter ended September 29, and its total debt was $757.62 million.

Technical Picture

This quick technical analysis looks at Farfetch Limited’s (FTCH) price momentum. With a historical volatility rate of 136.33%, the RSI 9-day stood at 44.23% on 23 November.

With respect to its five-day moving average, the current Farfetch Limited price is down by -15.79% percent or -$1.47. At present, FTCH shares trade -5.08% below its 20-day simple moving average and -1.13% percent below its 100-day simple moving average. However, the stock is currently trading approximately -31.11% below its SMA50 and -60.02% below its SMA200.

Stochastic coefficient K was 10.30% and Stochastic coefficient D was 17.41%, while ATR was 0.87. Given the Stochastic reading of 18.28% for the 14-day period, the RSI (14) reading has been calculated as 46.03%. As of today, the MACD Oscillator reading stands at -1.24, while the 14-day reading stands at -0.97.

With a median target price of $13.50, the current consensus forecast for the stock is $6.00 – $25.00. Based on these forecasts, analysts predict Farfetch Limited (FTCH) will achieve an average price target of $13.95.


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