Overstock.com Inc. (NASDAQ:OSTK) shares fell to a low of $18.245 before closing at $20.14. Intraday shares traded counted 2.22 million, which was 36.38% higher than its 30-day average trading volume of 3.49M. OSTK’s previous close was $19.33 while the outstanding shares total 40.16M. The firm has a beta of 3.67. The stock’s Relative Strength Index (RSI) is 70.27, with weekly volatility at 8.02% and ATR at 1.90. The OSTK stock’s 52-week price range has touched low of $2.53 and a $29.75 high. The stock traded higher over the last trading session, gaining 4.19% on 06/01/20.
Investors have identified the Internet Retail company Overstock.com Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $776.25 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Overstock.com Inc. (OSTK) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For OSTK, the company has in raw cash 143.92 million on their books with 5.97 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 210884000 million total, with 228648000 million as their total liabilities.
OSTK were able to record -15.87 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 29.02 million. In cash movements, the company had a total of -12.23 million as operating cash flow.
Potential earnings growth for Overstock.com Inc. (OSTK)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Overstock.com Inc. recorded a total of 351.57 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -4.6% coming in sequential stages and their sales for the third quarter reducing by -5.49%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 275.73 million trying to sell their products during the last quarter, with the result yielding a gross income of 75.84 million. This allows shareholders to hold on to 40.16M with the revenue now reading -0.40 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.62 cents a share).
Having a look at the company’s valuation, the company is expected to record -6.21 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on OSTK sounds very interesting.
Is the stock of OSTK attractive?
In related news, Director, Shapiro Robert Jacob bought 3,000 shares of the company’s stock in a transaction that recorded on May 04. The purchase was performed at an average price of 13.00, for a total value of 39,000. As the purchase deal closes, the President, Retail, Nielsen David J. now bought 2,449 shares of the company’s stock, valued at 10,205. Also, Director, ABRAHAM ALLISON H bought 15,000 shares of the company’s stock in a deal that was recorded on Mar 20. The shares were cost at an average price of 3.85 per share, with a total market value of 57,755. Following this completion of disposal, the Chief Administrative Officer, Lee Carter Paul now holds 325 shares of the company’s stock, valued at 1,329. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.30%.