Duckhorn Portfolio Inc (NYSE: NAPA)’s stock price has dropped by -3.74 in relation to previous closing price of 10.70. Nevertheless, the company has seen a loss of -1.34% in its stock price over the last five trading days. Proactive Investors reported 2023-11-17 that Napa Valley winemaker The Duckhorn Portfolio Inc has bought luxury chardonnay maker Sonoma-Cutrer Vineyards for $400 million in cash and shares from current owner Brown-Forman (NYSE:BF.B) Corp.  Founded in 1973, Sonoma-Cutrer is one of the biggest US luxury chardonnay brands, an area where Duckhorn said it has limited presence. Under the terms of the deal, Brown-Forman will receive $50 million in cash and $350 million of shares, giving it a 21.5% stake in its fellow New York-listed group and the right to nominate two directors to the board.

Is It Worth Investing in Duckhorn Portfolio Inc (NYSE: NAPA) Right Now?

Duckhorn Portfolio Inc (NYSE: NAPA) has a higher price-to-earnings ratio of 17.14x compared to its average ratio. compared to its average ratio and a 36-month beta value of 0.27. Analysts have mixed views on the stock, with 6 analysts rating it as a “buy,” 1 as “overweight,” 2 as “hold,” and 0 as “sell.”

The average price point forecasted by analysts for Duckhorn Portfolio Inc (NAPA) is $14.67, which is $4.37 above the current market price. The public float for NAPA is 49.73M, and currently, short sellers hold a 4.89% ratio of that float. The average trading volume of NAPA on November 17, 2023 was 680.80K shares.

NAPA’s Market Performance

NAPA stock saw a decrease of -1.34% in the past week, with a monthly decline of -0.96% and a quarterly a decrease of -17.86%. The volatility ratio for the week is 2.19%, and the volatility levels for the last 30 days are 2.56% for Duckhorn Portfolio Inc (NAPA). The simple moving average for the past 20 days is -2.66% for NAPA’s stock, with a -22.08% simple moving average for the past 200 days.

Analysts’ Opinion of NAPA

Many brokerage firms have already submitted their reports for NAPA stocks, with Jefferies repeating the rating for NAPA by listing it as a “Buy.” The predicted price for NAPA in the upcoming period, according to Jefferies is $13 based on the research report published on November 13, 2023 of the current year 2023.

NAPA Trading at -4.22% from the 50-Day Moving Average

After a stumble in the market that brought NAPA to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -42.52% of loss for the given period.

Volatility was left at 2.56%, however, over the last 30 days, the volatility rate increased by 2.19%, as shares sank -1.63% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -11.65% lower at present.

During the last 5 trading sessions, NAPA fell by -1.92%, which changed the moving average for the period of 200-days by -37.86% in comparison to the 20-day moving average, which settled at $10.57. In addition, Duckhorn Portfolio Inc saw -37.84% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at NAPA starting from Mahlan Deirdre, who purchase 5,000 shares at the price of $9.95 back on Oct 04. After this action, Mahlan Deirdre now owns 5,000 shares of Duckhorn Portfolio Inc, valued at $49,750 using the latest closing price.

Mallard Holdco, LLC, the 10% Owner of Duckhorn Portfolio Inc, sale 6,000,000 shares at $15.35 during a trade that took place back on Apr 06, which means that Mallard Holdco, LLC is holding 62,147,261 shares at $92,100,000 based on the most recent closing price.

Stock Fundamentals for NAPA

Current profitability levels for the company are sitting at:

• +27.39 for the present operating margin
• +46.72 for the gross margin

The net margin for Duckhorn Portfolio Inc stands at +17.20. The total capital return value is set at 9.56, while invested capital returns managed to touch 6.07. Equity return is now at value 7.66, with 5.29 for asset returns.

Based on Duckhorn Portfolio Inc (NAPA), the company’s capital structure generated 26.93 points at debt to equity in total, while total debt to capital is 21.22. Total debt to assets is 18.66, with long-term debt to equity ratio resting at 25.50. Finally, the long-term debt to capital ratio is 20.09.

When we switch over and look at the enterprise to sales, we see a ratio of 3.71, with the company’s debt to enterprise value settled at 0.15. The receivables turnover for the company is 9.40 and the total asset turnover is 0.31. The liquidity ratio also appears to be rather interesting for investors as it stands at 5.20.

Conclusion

To put it simply, Duckhorn Portfolio Inc (NAPA) has had a bad performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as 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.