Are You Looking To Buy Waterdrop Inc. (WDH)? First, Read This

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Waterdrop Inc. (NYSE:WDH) traded with a subtraction of -$0.11 to close at $2.94 on Thursday, a downside of -3.61 percent. An average of 1,053,650 shares of common stock have been traded in the last five days. There was a gain of $0.42 in the past week, and it reached a new high 19 times over the past 12 months. The last 20 days have seen an average of 640,843 shares traded, while the 50-day average volume stands at 395,773.

WDH stock has increased by 89.44% in the last month. The company shares reached their 1-month lowest point of $1.57 on 12/02/22. With the stock rallying to its 52-week high on 12/27/22, shares of the company touched a low of $0.90 and a high of $3.30 in 52 weeks. It has reached a new high 18 times so far this year and achieved 121.01% or $1.53 in price. In spite of this, the price is down -10.91% from the 52-week high.

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Valuation Metrics

Waterdrop Inc. (WDH) has a trailing price-to-earnings (P/E) ratio of 20.89. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.80, the price-to-book (PB) ratio at 1.78.

Financial Health

Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending September 29. Its gross profit as reported stood at $337.61 million compared to revenue of $503.08 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Waterdrop Inc.’s return on assets was 7.60%.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$270.9 million in the quarter, while revenues were grew 100.0%. The analyst consensus anticipated Waterdrop Inc.’s latest quarter earnings to come in at $0.03 per share, but it turned out to be $0.09, a 200.00% surprise. For the quarter, EBITDA amounted to $18.64 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Waterdrop Inc. (WDH) price momentum. RSI 9-day as of the close on 28 December was 68.49%, suggesting the stock is Neutral, with historical volatility in this time frame at 89.07%.

As of today, WDH’s price is $3.01 +16.87% or $0.42 from its 5-day moving average. WDH is currently trading +80.75% higher than its 20-day SMA and +134.68% higher than its 100-day SMA. However, the stock’s current price level is +157.52% above the SMA50 and +219.75% above the SMA200.

The stochastic %K and %D were 83.41% and 88.22%, respectively, and the average true range (ATR) was 0.31. With the 14-day stochastic at 71.32% and the average true range at 0.27, the RSI (14) stands at 70.55%. The stock has reached 0.38 on the 9-day MACD Oscillator while the 14-day reading was at 0.57.

Analyst Ratings

Morgan Stanley upgraded Waterdrop Inc. (NYSE: WDH) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal-weight. The consensus rating for Waterdrop Inc. (WDH) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell WDH, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 3 others rate it as a “buy”.

What is WDH’s price target for the next 12 months?

Analysts predict a range of price targets between $16.04 and $23.10, with a median target of $17.78. Taking a look at these predictions, the average price target given by analysts for Waterdrop Inc. (WDH) stock is $18.67.

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