The stock price of Academy Sports and Outdoors Inc (NASDAQ: ASO) has plunged by -5.74 when compared to previous closing price of 53.30, but the company has seen a -2.09% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-10-15 that Academy Sports and Outdoors’ aggressive expansion plan and omnichannel development could drive significant growth, potentially making the company undervalued by 31%. The company’s long-term strategy includes opening 160-180 new stores by 2027, enhancing omnichannel capabilities, and optimizing existing store productivity. Despite recent sales challenges, Academy’s strong fundamentals and financial position support the feasibility of its growth plan, targeting $10 billion in revenue.
Is It Worth Investing in Academy Sports and Outdoors Inc (NASDAQ: ASO) Right Now?
The price-to-earnings ratio for Academy Sports and Outdoors Inc (NASDAQ: ASO) is above average at 7.75x. The 36-month beta value for ASO is also noteworthy at 1.37. There are mixed opinions on the stock, with 6 analysts rating it as a “buy,” 5 rating it as “overweight,” 8 rating it as “hold,” and 0 rating it as “sell.”
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The public float for ASO is 69.35M, and at present, short sellers hold a 9.22% of that float. The average trading volume of ASO on November 06, 2024 was 1.29M shares.
ASO’s Market Performance
The stock of Academy Sports and Outdoors Inc (ASO) has seen a -2.09% decrease in the past week, with a -8.66% drop in the past month, and a 1.41% gain in the past quarter. The volatility ratio for the week is 2.88%, and the volatility levels for the past 30 days are at 2.67% for ASO. The simple moving average for the past 20 days is -5.66% for ASO’s stock, with a -13.95% simple moving average for the past 200 days.
Analysts’ Opinion of ASO
Many brokerage firms have already submitted their reports for ASO stocks, with Evercore ISI repeating the rating for ASO by listing it as a “In-line.” The predicted price for ASO in the upcoming period, according to Evercore ISI is $60 based on the research report published on October 03, 2024 of the current year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see ASO reach a price target of $54, previously predicting the price at $58. The rating they have provided for ASO stocks is “Hold” according to the report published on August 13th, 2024.
JP Morgan gave a rating of “Neutral” to ASO, setting the target price at $53 in the report published on August 05th of the current year.
ASO Trading at -9.52% from the 50-Day Moving Average
After a stumble in the market that brought ASO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -33.66% of loss for the given period.
Volatility was left at 2.67%, however, over the last 30 days, the volatility rate increased by 2.88%, as shares sank -7.49% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -9.63% lower at present.
During the last 5 trading sessions, ASO fell by -1.56%, which changed the moving average for the period of 200-days by -22.68% in comparison to the 20-day moving average, which settled at $53.27. In addition, Academy Sports and Outdoors Inc saw -23.88% 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 ASO starting from Tweedy Jeffrey C., who sale 1,200 shares at the price of $62.00 back on Sep 18 ’24. After this action, Tweedy Jeffrey C. now owns 8,906 shares of Academy Sports and Outdoors Inc, valued at $74,400 using the latest closing price.
Tweedy Jeffrey C., the Director of Academy Sports and Outdoors Inc, proposed sale 1,200 shares at $62.00 during a trade that took place back on Sep 18 ’24, which means that Tweedy Jeffrey C. is holding shares at $74,400 based on the most recent closing price.
Stock Fundamentals for ASO
Current profitability levels for the company are sitting at:
- 0.1 for the present operating margin
- 0.33 for the gross margin
The net margin for Academy Sports and Outdoors Inc stands at 0.08. The total capital return value is set at 0.17. Equity return is now at value 26.40, with 10.20 for asset returns.
Based on Academy Sports and Outdoors Inc (ASO), the company’s capital structure generated 0.46 points at debt to capital in total, while cash flow to debt ratio is standing at 0.34. The debt to equity ratio resting at 0.87. The interest coverage ratio of the stock is 15.05.
Currently, EBITDA for the company is 788.33 million with net debt to EBITDA at 1.87. When we switch over and look at the enterprise to sales, we see a ratio of 0.81. The receivables turnover for the company is 476.57for trailing twelve months and the total asset turnover is 1.25. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.66.
Conclusion
In summary, Academy Sports and Outdoors Inc (ASO) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing 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.
