Li-Cycle Holdings Corp. (LICY): Keep paying attention to its insider activity


Li-Cycle Holdings Corp. (NYSE:LICY) saw a downside of -9.83% to $5.36 after subtracting -$0.59 on Wednesday. The 5-day average trading volume is 1,053,554 shares of the company’s common stock. It has gained $6.07 in the past week and touched a new high 4 times within the past 5 days. An average of 1,081,569 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,124,021.

LICY’s 1-month performance is 17.13% or $0.60 on its low of $4.48 reached on 12/28/22. The company’s shares have touched a 52-week low of $4.48 and high of $9.48, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, LICY has achieved 25.00% or $0.60 and has reached a new high 11 times. However, the current price is down -43.41% from the 52-week high price.

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Valuation Metrics

Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 67.19 while the price-to-book (PB) in the most recent quarter is 1.98.

Li-Cycle Holdings Corp.’s quick ratio for the period ended July 30 was 17.10, with the current ratio over the same period at 17.30. As well, the company’s long term debt to equity for the quarter ending July 30 was 0.64, while the total debt to equity was 0.65. In terms of profitability, the gross margin trailing 12 months is 45.00%. The firm’s gross profit as reported stood at $3.96 million against revenue of $7.38 million.

Earnings Surprise

For the quarterly period ending July 30 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 100.0% to -$226.56 million, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected LICY to announce -$0.13 per share in earnings in its latest quarter, but it posted -$0.21, representing a -61.50% surprise. EBITDA for the quarter stood at more than -$31.55 million. LICY stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 380.75 million, with total debt at $341.85 million.

Let’s look briefly at Li-Cycle Holdings Corp. (LICY) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 46.36% to suggest the stock is trending Neutral, with historical volatility in this time period at 81.34%.

The stock’s 5-day moving average is $5.67, reflecting a -4.88% or -$0.28 change from its current price. LICY is currently trading +12.71% above its 20-day SMA, -25.59% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -10.88% and SMA200 by-27.20%.

Stochastic %K and %D was 78.78% and 80.72% and the average true range (ATR) pointed at 0.33. The RSI (14) points at 48.40%, while the 14-day stochastic is at 47.40% with the period’s ATR at 0.31. The stock’s 9-day MACD Oscillator is pointing at 0.08 and 0.26 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Li-Cycle Holdings Corp. (NYSE: LICY), Morgan Stanley downgraded it to an Underweight rating. They previously had an Equal-weight rating on the stock. Analysts offering their rating for LICY stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate LICY as a “sell,”, while 1 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 6 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $4.00 and a high of $13.00, with their median price target at $9.50. Looking at these predictions, the average price target given by analysts is for Li-Cycle Holdings Corp. (LICY) stock is $9.31.


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