Sovos Brands Inc. (NASDAQ:SOVO) finished Wednesday with a subtraction of -$0.02 to close at $22.53, a downside of -0.09 percent. An average of 1,266,040 shares of common stock have been traded in the last five days. There was a fall of -$0.02 in the past week, and it reached a new high 20 times over the past 12 months. The last 20 days have seen an average of 2,093,660 shares traded, while the 50-day average volume stands at 1,083,916.
SOVO stock has increased by 19.71% in the last month. The company shares reached their 1-month lowest point of $17.54 on 07/31/23. With the stock rallying to its 52-week high on 08/07/23, shares of the company touched a low of $12.74 and a high of $22.63 in 52 weeks. It has reached a new high 19 times so far this year and achieved 56.78% or $8.16 in price. In spite of this, the price is down -0.44% from the 52-week high.
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Insider Transactions
SOVO stock investors should be aware that Sovos Brands Inc. (SOVO) stock had its last reported insider trading activity 10 days ago on Aug 14. In this transaction, the insider spent $1,014,669. PRESIDENT AND CEO, LACHMAN TODD R, disposed of 11,250 shares at a price of $22.55 on Aug 14. The insider now owns more than $253,658 worth of shares. Prior to that, PRESIDENT AND CEO LACHMAN TODD R went on to Sale 45,000 shares at $22.56 each on Aug 11. An amount of $1,015,416 was transacted.
Valuation Metrics
Sovos Brands Inc. (SOVO) stock’s beta is -0.09. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.43, the price-to-book (PB) ratio at 4.55, and the price-to-cash flow ratio at 40.10.
Financial Health
The quick ratio of Sovos Brands Inc. for the three months ended June 29 was 2.30, and the current ratio was 3.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.96 and a total debt to equity ratio of 0.96 for the quarter ending June 29. Sovos Brands Inc.’s EBITDA margin for the year ending June 29 is 16.93%, while its operating margin for the same period stands at 2.20%. Its gross profit as reported stood at $246.66 million compared to revenue of $878.37 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, Sovos Brands Inc.’s return on assets was -1.20%.
Earnings Surprise
For the three-month period that ended June 29, Sovos Brands Inc. had $482.82 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 $5.39 million in the quarter, while revenues of $7.85 million were grew 661.97%. The analyst consensus anticipated Sovos Brands Inc.’s latest quarter earnings to come in at $0.13 per share, but it turned out to be $0.17, a 30.80% surprise. For the quarter, EBITDA amounted to $25.95 million. Shareholders own equity worth $101.32 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Sovos Brands Inc. (SOVO) price momentum. RSI 9-day as of the close on 23 August was 80.68%, suggesting the stock is Overbought, with historical volatility in this time frame at 2.04%.
As of today, SOVO’s price is $22.53 -0.09% or -$0.02 from its 5-day moving average. SOVO is currently trading +22.25% higher than its 20-day SMA and +35.72% higher than its 100-day SMA. However, the stock’s current price level is +23.86% above the SMA50 and +56.35% above the SMA200.
The stochastic %K and %D were 98.07% and 98.01%, respectively, and the average true range (ATR) was 0.27. With the 14-day stochastic at 97.84% and the average true range at 0.35, the RSI (14) stands at 76.09%. The stock has reached 0.00 on the 9-day MACD Oscillator while the 14-day reading was at 0.32.
Analyst Ratings
Stephens launched coverage on Sovos Brands Inc. (NASDAQ: SOVO) in its analyst report released on June 23, 2023. The firm assigned the stock an Overweight rating. The consensus rating for Sovos Brands Inc. (SOVO) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SOVO, while 7 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 0 others rate it as a “buy”.
