Buying SMART Global Holdings Inc. (SGH) Stock Is A Smart Move Today?

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SMART Global Holdings Inc. (NASDAQ:SGH) finished Friday with a subtraction of -$0.23 to close at $14.88, a downside of -1.52 percent. An average of 563,760 shares of common stock have been traded in the last five days. There was a fall of -$0.91 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 562,680 shares traded, while the 50-day average volume stands at 498,740.

SGH stock has decreased by -12.00% in the last month. The company shares reached their 1-month lowest point of $14.62 on 12/28/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $12.04 and a high of $37.25 in 52 weeks. It has reached a new high 1 time so far this year and lost -58.08% or -$20.61 in price. In spite of this, the price is down -60.05% from the 52-week high.


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Insider Transactions

SGH stock investors should be aware that SMART Global Holdings Inc. (SGH) stock had its last reported insider trading activity 46 days ago on Nov 15. In this transaction, the insider spent $145,161. Director, HERSCHER PENNY, disposed of 2,156 shares at a price of $16.11 on Oct 03. The insider now owns more than $34,733 worth of shares. Prior to that, SVP, Pres, LED Solutions Demby Claude went on to Sale 27,365 shares at $23.93 each on Apr 22. An amount of $654,918 was transacted.

Valuation Metrics

SMART Global Holdings Inc. (SGH) has a trailing price-to-earnings (P/E) ratio of 11.97. The stock’s beta is 1.30. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.42, the price-to-book (PB) ratio at 1.97, and the price-to-cash flow ratio at 11.35.

Financial Health

The quick ratio of SMART Global Holdings Inc. for the three months ended August 30 was 1.60, and the current ratio was 2.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.59 and a total debt to equity ratio of 1.62 for the quarter ending August 30. Its gross profit as reported stood at $453.22 million compared to revenue of $1.82 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, SMART Global Holdings Inc.’s return on assets was 4.50%.

Earnings Surprise

For the three-month period that ended August 30, SMART Global Holdings Inc. had $591.39 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $19.96 million in the quarter, while revenues of $24.11 million were shrunk -3.46%. The analyst consensus anticipated SMART Global Holdings Inc.’s latest quarter earnings to come in at $0.65 per share, but it turned out to be $0.8, a 23.10% surprise.

Technical Picture

From a technical analysis perspective, let’s take a brief look at SMART Global Holdings Inc. (SGH) price momentum. RSI 9-day as of the close on 30 December was 34.94%, suggesting the stock is Neutral, with historical volatility in this time frame at 33.46%.

As of today, SGH’s price is $14.98 -5.76% or -$0.91 from its 5-day moving average. SGH is currently trading -13.39% lower than its 20-day SMA and -20.04% lower than its 100-day SMA. However, the stock’s current price level is +14.46% above the SMA50 and -42.19% below the SMA200.

The stochastic %K and %D were 8.60% and 5.88%, respectively, and the average true range (ATR) was 0.61. With the 14-day stochastic at 8.18% and the average true range at 0.63, the RSI (14) stands at 39.71%. The stock has reached -0.56 on the 9-day MACD Oscillator while the 14-day reading was at -1.02.

Analyst Ratings

Needham reiterated its a Buy rating on SMART Global Holdings Inc. (NASDAQ: SGH), but raised their price target to $45, indicating a potential price increase of 66.93% for the stock.

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