SmileDirectClub Inc. (NASDAQ:SDC) finished Thursday with a subtraction of -$0.09 to close at $0.51, a downside of -14.63 percent. An average of 4,570,020 shares of common stock have been traded in the last five days. There was a fall of -$0.3632 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 3,935,695 shares traded, while the 50-day average volume stands at 2,505,104.
SDC stock has decreased by -28.06% in the last month. The company shares reached their 1-month lowest point of $0.5000 on 08/10/23. With the stock rallying to its 52-week high on 08/01/23, shares of the company touched a low of $0.31 and a high of $2.26 in 52 weeks. It has reached a new high 7 times so far this year and achieved 45.43% or $0.1600 in price. In spite of this, the price is down -77.34% from the 52-week high.
Insider Transactions
SDC stock investors should be aware that SmileDirectClub Inc. (SDC) stock had its last reported insider trading activity 51 days ago on Jun 21. In this transaction, the insider spent $58,878. EVP, CLO, Secretary, Rammelt Susan Greenspon, disposed of 350,000 shares at a price of $0.38 on Mar 29. The insider now owns more than $133,175 worth of shares.
Valuation Metrics
SmileDirectClub Inc. (SDC) stock’s beta is 2.41. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.45, the price-to-book (PB) ratio at 0.67.
Financial Health
The quick ratio of SmileDirectClub Inc. for the three months ended June 29 was 1.90, 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 8.72 and a total debt to equity ratio of 0.00 for the quarter ending June 29. SmileDirectClub Inc.’s EBITDA margin for the year ending June 29 is -35.43%, while its operating margin for the same period stands at -56.90%. Its gross profit as reported stood at $327.85 million compared to revenue of $470.74 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, SmileDirectClub Inc.’s return on assets was -13.80%.
Earnings Surprise
For the three-month period that ended June 29, SmileDirectClub Inc. had $863.41 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 -$17.77 million in the quarter, while revenues of -$21.42 million were shrunk -14.29%. The analyst consensus anticipated SmileDirectClub Inc.’s latest quarter earnings to come in at -$0.12 per share, but it turned out to be -$0.13, a -8.30% surprise. For the quarter, EBITDA amounted to -$27.59 million. At the end of the quarter ending June 29, SmileDirectClub Inc.’s stock balance sheet showed total liabilities of 988.82 million. Shareholders own equity worth $402.61 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at SmileDirectClub Inc. (SDC) price momentum. RSI 9-day as of the close on 10 August was 34.42%, suggesting the stock is Neutral, with historical volatility in this time frame at 256.14%.
As of today, SDC’s price is $0.7217 -41.49% or -$0.3632 from its 5-day moving average. SDC is currently trading -34.25% lower than its 20-day SMA and +24.65% higher than its 100-day SMA. However, the stock’s current price level is +38.43% above the SMA50 and -34.27% below the SMA200.
The stochastic %K and %D were 26.98% and 40.58%, respectively, and the average true range (ATR) was 0.1323. With the 14-day stochastic at 2.07% and the average true range at 0.1169, the RSI (14) stands at 40.49%. The stock has reached -0.1875 on the 9-day MACD Oscillator while the 14-day reading was at -0.1318.
Analyst Ratings
Loop Capital downgraded SmileDirectClub Inc. (NASDAQ: SDC) to a a Sell rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for SmileDirectClub Inc. (SDC) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell SDC, while 5 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 0 others rate it as a “buy”.
What is SDC’s price target for the next 12 months?
Analysts predict a range of price targets between $0.40 and $1.00, with a median target of $0.70. Taking a look at these predictions, the average price target given by analysts for SmileDirectClub Inc. (SDC) stock is $0.70.
