Premier Inc. (NASDAQ:PINC) finished Friday with an addition of $0.47 to close at $21.64, an upside of 2.22 percent. An average of 1,693,180 shares of common stock have been traded in the last five days. There was a fall of -$3.72 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 884,695 shares traded, while the 50-day average volume stands at 754,586.
PINC stock has decreased by -20.44% in the last month. The company shares reached their 1-month lowest point of $21.05 on 08/25/23. With the stock rallying to its 52-week high on 01/04/23, shares of the company touched a low of $21.16 and a high of $37.53 in 52 weeks. It has reached a new high 2 times so far this year and lost -38.14% or -$13.34 in price. In spite of this, the price is down -42.34% from the 52-week high.
Valuation Metrics
Premier Inc. (PINC) has a trailing price-to-earnings (P/E) ratio of 14.13. The stock’s beta is 0.37. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.96, the price-to-book (PB) ratio at 1.10, and the price-to-cash flow ratio at 7.36.
The company has a payout ratio of 53.00%. The company’s most recent quarterly dividend payment was $0.21 a share, without any change from last year. Its latest increase dividend $0.01 reported on Thursday August 4 2022.
Financial Health
The quick ratio of Premier Inc. for the three months ended June 29 was 0.60, and the current ratio was 0.70, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.05 and a total debt to equity ratio of 0.20 for the quarter ending June 29. Premier Inc.’s EBITDA margin for the year ending June 29 is 27.96%, while its operating margin for the same period stands at 19.60%. Its gross profit as reported stood at $896.29 million compared to revenue of $1.34 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Premier Inc.’s return on assets was 5.30%.
Earnings Surprise
For the three-month period that ended June 29, Premier Inc. had $0.73 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $21.46 million in the quarter, while revenues of $46.8 million were shrunk -39.33%. The analyst consensus anticipated Premier Inc.’s latest quarter earnings to come in at $0.66 per share, but it turned out to be $0.68, a 3.00% surprise. For the quarter, EBITDA amounted to $66.08 million. Shareholders own equity worth $119.17 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Premier Inc. (PINC) price momentum. RSI 9-day as of the close on 25 August was 13.43%, suggesting the stock is oversold, with historical volatility in this time frame at 42.88%.
As of today, PINC’s price is $22.73 -14.67% or -$3.72 from its 5-day moving average. PINC is currently trading -20.94% lower than its 20-day SMA and -33.29% lower than its 100-day SMA. However, the stock’s current price level is -16.29% below the SMA50 and -31.08% below the SMA200.
The stochastic %K and %D were 4.16% and 2.86%, respectively, and the average true range (ATR) was 0.85. With the 14-day stochastic at 8.91% and the average true range at 0.73, the RSI (14) stands at 16.13%. The stock has reached -2.55 on the 9-day MACD Oscillator while the 14-day reading was at -3.57.
Analyst Ratings
Piper Sandler downgraded Premier Inc. (NASDAQ: PINC) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for Premier Inc. (PINC) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PINC, while 7 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 2 others rate it as a “buy”.
What is PINC’s price target for the next 12 months?
Analysts predict a range of price targets between $24.00 and $32.00, with a median target of $26.00. Taking a look at these predictions, the average price target given by analysts for Premier Inc. (PINC) stock is $26.89.
