Prestige Wealth Inc (NASDAQ: PWM)’s stock price has gone decline by -11.81 in comparison to its previous close of 1.10, however, the company has experienced a -14.15% decrease in its stock price over the last five trading days. globenewswire.com reported 2024-11-12 that HONG KONG, Nov. 12, 2024 (GLOBE NEWSWIRE) — Prestige Wealth Inc. (NASDAQ: PWM) (“PWM”, or the “Company”), a wealth management and asset management services provider based in Hong Kong, today announced that, on November 12, 2024, it entered into a definitive acquisition agreement pursuant to which PWM will purchase all shares of Tokyo Bay Management Inc. (“Tokyo Bay”), a company incorporated under the laws of the British Virgin Islands. The total purchase price is US$1,500,000, subject to customary closing purchase price adjustments, in the form of 2,500,000 newly issued Class B ordinary shares of the Company at a price per Class B ordinary share of US$0.60 to the seller and key employees of Tokyo Bay. The Company will also grant warrants to purchase 1,875,000 Class A ordinary shares of the Company at an exercise price per share equal to US$0.72 to the seller parties. The warrants will become exercisable on the six-month anniversary of the issuance date and will expire on the fifth anniversary from the date on which they become exercisable. In addition, key employees will be retained and continue to be employed by Tokyo Bay after closing of the transaction. The acquisition agreement also includes a third-year period non-competition and non-solicitation covenants from the seller parties. Upon consummation of the acquisition of Tokyo Bay, that certain business development & marketing agreement by and between PWM and Tokyo Bay dated as of June 24, 2024 will be terminated. The acquisition of Tokyo Bay is expected to close in the fourth quarter of 2024 and will enhance PWM’s strategy and development in Asia wealth management industry.
Is It Worth Investing in Prestige Wealth Inc (NASDAQ: PWM) Right Now?
PWM has 36-month beta value of 3.96.
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The public float for PWM is 0.35M, and currently, short sellers hold a 14.90% ratio of that float. The average trading volume of PWM on November 20, 2024 was 1.37M shares.
PWM’s Market Performance
The stock of Prestige Wealth Inc (PWM) has seen a -14.15% decrease in the past week, with a 5.33% rise in the past month, and a 22.80% gain in the past quarter. The volatility ratio for the week is 19.06%, and the volatility levels for the past 30 days are at 16.55% for PWM. The simple moving average for the past 20 days is 2.76% for PWM’s stock, with a -6.05% simple moving average for the past 200 days.
PWM Trading at 12.27% from the 50-Day Moving Average
After a stumble in the market that brought PWM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -70.05% of loss for the given period.
Volatility was left at 16.55%, however, over the last 30 days, the volatility rate increased by 19.06%, as shares surge +16.42% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +30.83% upper at present.
During the last 5 trading sessions, PWM fell by -14.15%, which changed the moving average for the period of 200-days by -25.95% in comparison to the 20-day moving average, which settled at $0.9441. In addition, Prestige Wealth Inc saw -53.80% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for PWM
Current profitability levels for the company are sitting at:
- -24.98 for the present operating margin
- 7.83 for the gross margin
The net margin for Prestige Wealth Inc stands at -23.27. The total capital return value is set at -0.18.
Currently, EBITDA for the company is -1.05 million with net debt to EBITDA at 0.05. When we switch over and look at the enterprise to sales, we see a ratio of 86.37. The receivables turnover for the company is 0.06for trailing twelve months and the total asset turnover is 0.01.
Conclusion
To put it simply, Prestige Wealth Inc (PWM) has had a mixed performance in recent times. Analysts have a mixed 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.
