SMART Global Holdings Inc (NASDAQ: SGH) has seen a rise in its stock price by 4.84 in relation to its previous close of 22.32. However, the company has experienced a 0.34% gain in its stock price over the last five trading sessions. investorplace.com reported 2024-07-29 that It’s a great time to consider investing in small-cap stocks. The Russell 2000 index — comprising 2,000 firms with market capitalizations between $250 million and $2 billion — recently hit its highest level since January 2022.
Is It Worth Investing in SMART Global Holdings Inc (NASDAQ: SGH) Right Now?
SGH has 36-month beta value of 1.69. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 1 as “overweight,” 0 as “hold,” and 0 as “sell.”
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The public float for SGH is 51.09M, and currently, short sellers hold a 10.89% ratio of that float. The average trading volume of SGH on August 01, 2024 was 1.05M shares.
SGH’s Market Performance
SGH stock saw an increase of 0.34% in the past week, with a monthly gain of 4.37% and a quarterly increase of 28.08%. The volatility ratio for the week is 4.11%, and the volatility levels for the last 30 days are 5.02% for SMART Global Holdings Inc (SGH). The simple moving average for the past 20 days is -5.90% for SGH’s stock, with a 15.21% simple moving average for the past 200 days.
Analysts’ Opinion of SGH
Many brokerage firms have already submitted their reports for SGH stocks, with Needham repeating the rating for SGH by listing it as a “Buy.” The predicted price for SGH in the upcoming period, according to Needham is $22 based on the research report published on October 13, 2023 of the previous year 2023.
Needham, on the other hand, stated in their research note that they expect to see SGH reach a price target of $40, previously predicting the price at $45. The rating they have provided for SGH stocks is “Buy” according to the report published on June 30th, 2022.
Rosenblatt gave a rating of “Buy” to SGH, setting the target price at $100 in the report published on December 27th of the previous year.
SGH Trading at 2.09% from the 50-Day Moving Average
After a stumble in the market that brought SGH to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -21.50% of loss for the given period.
Volatility was left at 5.02%, however, over the last 30 days, the volatility rate increased by 4.11%, as shares surge +2.05% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +15.61% upper at present.
During the last 5 trading sessions, SGH rose by +0.34%, which changed the moving average for the period of 200-days by -0.76% in comparison to the 20-day moving average, which settled at $24.89. In addition, SMART Global Holdings Inc saw 23.61% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SGH starting from JACK A PACHECO, who proposed sale 46,667 shares at the price of $22.76 back on Jul 26 ’24. After this action, JACK A PACHECO now owns shares of SMART Global Holdings Inc, valued at $1,062,141 using the latest closing price.
Pacheco Jack A, the EVP, COO, Pres, Mem Solutions of SMART Global Holdings Inc, sale 13,333 shares at $23.16 during a trade that took place back on Jul 26 ’24, which means that Pacheco Jack A is holding 211,896 shares at $308,835 based on the most recent closing price.
Stock Fundamentals for SGH
Current profitability levels for the company are sitting at:
- 0.02 for the present operating margin
- 0.29 for the gross margin
The net margin for SMART Global Holdings Inc stands at -0.14. The total capital return value is set at 0.02. Equity return is now at value 12.15, with 2.87 for asset returns.
Based on SMART Global Holdings Inc (SGH), the company’s capital structure generated 0.62 points at debt to capital in total, while cash flow to debt ratio is standing at 0.18. The debt to equity ratio resting at 1.61. The interest coverage ratio of the stock is 0.56.
Currently, EBITDA for the company is 116.63 million with net debt to EBITDA at 2.95. When we switch over and look at the enterprise to sales, we see a ratio of 1.29. The receivables turnover for the company is 5.55for trailing twelve months and the total asset turnover is 0.76. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.68.
Conclusion
To put it simply, SMART Global Holdings Inc (SGH) has had a better 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.
