The stock of Farfetch Limited (NYSE:FTCH) increased by $0.16 on Monday to finish at $5.26, up 3.14 percent. The last five days have seen an average of 8,548,840 shares of common stock traded. 15 times new highs were reached in the current year, with a gain of $0.53. The average number of shares traded over the last 20 days was 9,977,325, while the average volume over the last 50 days totaled 10,020,228.
FTCH stock dropped -15.84% since last month. On 08/08/23, the company’s shares reached a one-month low of $4.90. The stock touched a high of $12.89 on 02/02/23, after rallying from a low of $3.64 in 52 weeks. The price of FTCH stock has risen by 11.21% or $0.53 this year, reaching a new high 15 times. Still, the stock price is down -59.19% from the 52-week high.
Valuation Metrics
Beta for the stock is 2.96. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.80, the price-to-book (PB) ratio of 3.23.
Financial Health
For the three months ended March 30, Farfetch Limited’s quick ratio was 1.30, while its current ratio was 1.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending March 30 is 1.70, and the total debt to equity ratio is 1.76. As far as profitability goes, gross margin for the trailing twelve months is 43.80% percent. Farfetch Limited’s EBITDA margin for the year ended March 30 was -14.83%, whereas its operating margin stood at -36.70% for the same period. Based on annual data, it had gross profit of $1.02 billion and revenue of $2.32 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. FTCH’s return on assets (ROA) during the last 12 months has been -15.30%. There was a -45.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -70.80%.
Earnings Surprise
According to Farfetch Limited’s quarterly financial report for the quarter that ended March 30, it had $16.19 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $2.32 billion, while revenues rose by 2.59% to $0.0. It was predicted that Farfetch Limited’s quarterly earnings would be -$0.43, but it ended up being -$0.44, beating the consensus by 2.30%. EBITDA was -$90.69 million for the quarter. At the end of Farfetch Limited’s most recent quarter ended March 30, its liabilities totaled 2.68 billion, while its total debt was $1.14 billion.
Technical Picture
Here’s a quick look at Farfetch Limited’s (FTCH) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 46.17%, suggesting the stock is Neutral, with a 32.70% historical volatility rate.
The stochastic %K and %D were 27.72% and 25.63% respectively, while the average true range (ATR) was 0.30. Based on the 14-day stochastic reading of 35.64%, the RSI (14) reading is 46.02%. On the 9-day MACD Oscillator, the stock is at -0.01, and the 14-day reading is at -0.13.
Analyst Ratings
In its analyst report released on March 24, 2023, JMP Securities began covering Farfetch Limited (NYSE: FTCH). The stock was rated as a Mkt perform by the brokerage firm. Analysts have assigned Farfetch Limited (FTCH) an Overweight rating. FTCH is a stock that is recommended for selling by 1 brokerage firm, while 8 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 10 others recommend it as a buy.
What is FTCH’s price target for the next 12 months?
The current consensus forecast for the stock is between $4.30 and $20.00, with a median target price of $8.00. In analyzing these forecasts, the average price target given by analysts for Farfetch Limited (FTCH) is $9.76.
