The stock of Golden Ocean Group Limited (NASDAQ: GOGL) has decreased by -0.65 when compared to last closing price of 7.68. Despite this, the company has experienced a 6.42% gain in its stock price over the last five trading sessions. GuruFocus reported 2023-09-27 that Investing in companies that pay dividends while prices are down is one way investors can hedge their portfolios against inflation and other headwinds. While there is always a risk of the dividend being cut, historically, dividend-paying companies have been found to be less erratic in choppy market conditions and continue to provide a better overall return compared to stocks that do not distribute dividends to investors.
Is It Worth Investing in Golden Ocean Group Limited (NASDAQ: GOGL) Right Now?
Golden Ocean Group Limited (NASDAQ: GOGL) has a higher price-to-earnings ratio of 7.70x compared to its average ratio, and the 36-month beta value for GOGL is at 1.19. Analysts have varying views on the stock, with 9 analysts rating it as a “buy,” 0 rating it as “overweight,” 2 as “hold,” and 0 as “sell.”
The average price suggested by analysts for GOGL is $10.21, which is $2.58 above the current market price. The public float for GOGL is 119.05M, and currently, shorts hold a 3.13% of that float. The average trading volume for GOGL on November 16, 2023 was 1.38M shares.
GOGL’s Market Performance
GOGL’s stock has seen a 6.42% increase for the week, with a -5.92% drop in the past month and a 0.79% gain in the past quarter. The volatility ratio for the week is 2.22%, and the volatility levels for the past 30 days are at 2.26% for Golden Ocean Group Limited The simple moving average for the last 20 days is 0.93% for GOGL stock, with a simple moving average of -7.67% for the last 200 days.
Analysts’ Opinion of GOGL
Many brokerage firms have already submitted their reports for GOGL stocks, with Jefferies repeating the rating for GOGL by listing it as a “Buy.” The predicted price for GOGL in the upcoming period, according to Jefferies is $11 based on the research report published on October 24, 2023 of the current year 2023.
GOGL Trading at -0.52% from the 50-Day Moving Average
After a stumble in the market that brought GOGL to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -27.88% of loss for the given period.
Volatility was left at 2.26%, however, over the last 30 days, the volatility rate increased by 2.22%, as shares sank -5.33% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +2.42% upper at present.
During the last 5 trading sessions, GOGL rose by +6.42%, which changed the moving average for the period of 200-days by -20.35% in comparison to the 20-day moving average, which settled at $7.54. In addition, Golden Ocean Group Limited saw -12.20% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for GOGL
Current profitability levels for the company are sitting at:
- +36.04 for the present operating margin
- +37.87 for the gross margin
The net margin for Golden Ocean Group Limited stands at +41.48. The total capital return value is set at 12.33, while invested capital returns managed to touch 14.77. Equity return is now at value 10.43, with 5.80 for asset returns.
Based on Golden Ocean Group Limited (GOGL), the company’s capital structure generated 64.97 points at debt to equity in total, while total debt to capital is 39.38. Total debt to assets is 38.24, with long-term debt to equity ratio resting at 58.87. Finally, the long-term debt to capital ratio is 35.69.
When we switch over and look at the enterprise to sales, we see a ratio of 2.80, with the company’s debt to enterprise value settled at 0.44. The receivables turnover for the company is 10.96 and the total asset turnover is 0.33. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.41.
In conclusion, Golden Ocean Group Limited (GOGL) has had a mixed performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.