As of Friday close, SMART Global Holdings Inc.’s (NASDAQ:SGH) stock was down -$0.11, moving down -0.47 percent to $23.24. The average number of shares traded per day over the past five days has been 412,280 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.96 fall in that time frame. In the last twenty days, the average volume was 546,075, while in the previous 50 days, it was 895,658.
Since last month, SGH stock retreated -8.61%. Shares of the company fell to $23.03 on 08/18/23, the lowest level in the past month. A 52-week high of $29.99 was reached on 06/30/23 after having rallying from a 52-week low of $12.04. Since the beginning of this year, SGH’s stock price has risen by 56.18% or $8.36, and marked a new high 21 times. However, the stock has declined by -22.51% since its 52-week high.
SGH stock investors should be aware that SMART Global Holdings Inc. (SGH) stock had its last reported insider trading activity 23 days ago on Jul 27. NAYYAR SANDEEP, the Director of the company, disposed of 9,672 shares for $26.60 on Jul 27. It resulted in a $257,242 divestment by the insider. Clark Joseph Gates sold 2,519 shares at an average price of $26.02 on Jul 25. The insider now owns 88,156 shares following the transaction. On Jul 20, EVP, COO, Pres, Mem Solutions Pacheco Jack A sold 7,500 shares at $25.48 apiece. The transaction was valued at $191,102.
Valuation Metrics
The stock’s beta is 1.47. Besides these, the trailing price-to-sales (P/S) ratio of 0.70, the price-to-book (PB) ratio of 3.61, and the price-to-cash flow ratio of 28.50 may also be considered.
Financial Health
In the three months ended May 30, SMART Global Holdings Inc.’s quick ratio stood at 1.90, while its current ratio was 2.40, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending May 30 was 2.46, and the total debt-to-equity ratio was 2.56. On the profitability front, the trailing twelve-month gross margin is 25.10% percent. In the year ended May 30, EBITDA margin amounted to 12.13%, whereas operating margins totaled 0.70%. Based on annual data, SGH earned $453.22 million in gross profit and brought in $1.82 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 9.60%. Return on equity (ROE) for the past 12 months was -7.80%.
In SMART Global Holdings Inc.’s quarter-end financial report for May 30, it reported total debt of $782.26 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. SGH’s revenue fell -20.66% to $429.17 million during the quarter, while net income inched up to $383.33 million. While analysts expected SMART Global Holdings Inc. to report $0.4 quarterly earnings, the actual figure was $0.66 per share, beating the consensus estimate by 65.00%. During the quarter, the company generated $13.44 million in EBITDA. The liabilities of SMART Global Holdings Inc. were 1.27 billion at the end of its most recent quarter ended May 30, and its total debt was $898.57 million. The value of shareholders’ equity is $50.07 million.
Technical Picture
This quick technical analysis looks at SMART Global Holdings Inc.’s (SGH) price momentum. With a historical volatility rate of 21.77%, the RSI 9-day stood at 23.10% on 18 August.
With respect to its five-day moving average, the current SMART Global Holdings Inc. price is down by -3.97% percent or -$0.96. At present, SGH shares trade -9.11% below its 20-day simple moving average and +45.80% percent above its 100-day simple moving average. However, the stock is currently trading approximately -3.33% below its SMA50 and +71.77% above its SMA200.
Stochastic coefficient K was 2.05% and Stochastic coefficient D was 7.01%, while ATR was 0.73. Given the Stochastic reading of 4.82% for the 14-day period, the RSI (14) reading has been calculated as 31.54%. As of today, the MACD Oscillator reading stands at -0.95, while the 14-day reading stands at -1.76.
Analyst Ratings
Needham reiterated its a Buy rating on SMART Global Holdings Inc. (NASDAQ: SGH) in a note to investors. The analysts firm has however raised their price target to $40, representing a possible 48.36% increase in the stock price. SMART Global Holdings Inc. (SGH) has been rated Buy by analysts. According to 0 brokerage firms, SGH is a sell, and 0 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate SMART Global Holdings Inc. stock as buy, with 4 recommending it as overweight.
With a median target price of $32.00, the current consensus forecast for the stock is $30.00 – $35.00. Based on these forecasts, analysts predict SMART Global Holdings Inc. (SGH) will achieve an average price target of $32.40.
