Leslie’s Inc. (LESL) Shares: Cheap or Risky?


Leslie’s Inc. (NASDAQ:LESL) saw a downside of -1.25% to close Tuesday at $14.20 after subtracting -$0.18 on the day. The 5-day average trading volume is 1,962,500 shares of the company’s common stock. It has gained $14.59 in the past week and touched a new high 2 times within the past 5 days. An average of 2,315,950 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,263,332.

LESL’s 1-month performance is 16.68% or $1.95 on its low of $11.86 reached on 12/30/22. The company’s shares have touched a 52-week low of $11.43 and high of $21.99, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, LESL has achieved 16.30% or $1.99 and has reached a new high 10 times. However, the current price is down -35.43% from the 52-week high price.

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Insider Transactions

LESL stock investors last saw insider trading activity on Dec 12.Bubbles Investor Aggregator, L (Former 10% Owner) most recently sold 9,343,499 shares at $12.02 per share on Dec 12. This transaction cost the insider $112,308,858., Gazaway Brad, sold 3,335 shares at a price of $14.82 on Sep 26. Then, on May 12, Chief Merchandising Officer LaBode Moyo sold 4,696 shares at a price of $17.48 per share. This transaction amounted to $82,086.

Valuation Metrics

Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.60 while the price to cash flow ratio at 71.47.

Leslie’s Inc.’s quick ratio for the period ended September 29 was 0.50, with the current ratio over the same period at 1.60.. In terms of profitability, the gross margin trailing 12 months is 43.10%. The firm’s gross profit as reported stood at $673.74 million against revenue of $1.56 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -54.98% to $28.74 million, while revenue of $122.99 million was -327.94% off the previous quarter. Analysts expected LESL to announce $0.31 per share in earnings in its latest quarter, but it posted $0.35, representing a 12.90% surprise. EBITDA for the quarter stood at more than $91.46 million. LESL stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 1.31 billion, with total debt at $1.03 billion. Shareholders hold equity totaling $183.54 million.

Let’s look briefly at Leslie’s Inc. (LESL) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 63.93% to suggest the stock is trending Neutral, with historical volatility in this time period at 40.66%.

The stock’s 5-day moving average is $13.96, reflecting a +0.21% or $0.03 change from its current price. LESL is currently trading +17.55% above its 20-day SMA, -0.77% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +1.07% and SMA200 by-29.98%.

Stochastic %K and %D was 86.00% and 78.14% and the average true range (ATR) pointed at 0.51. The RSI (14) points at 61.02%, while the 14-day stochastic is at 83.56% with the period’s ATR at 0.52. The stock’s 9-day MACD Oscillator is pointing at 0.17 and 0.53 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Leslie’s Inc. (NASDAQ: LESL), Stifel downgraded it to a Hold rating. They previously had a Buy rating on the stock. Analysts offering their rating for LESL stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate LESL as a “sell,”, while 6 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 7 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $14.00 and a high of $20.00, with their median price target at $15.00. Looking at these predictions, the average price target given by analysts is for Leslie’s Inc. (LESL) stock is $16.00.


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