Goosehead Insurance Inc (NASDAQ:GSHD) has a 12-month trailing P/E ratio of 745.20, and a growth ratio of 14.90. The stock’s Relative Strength Index (RSI) is 62.86, with weekly volatility at 4.11% and ATR at 3.19. The GSHD stock’s 52-week price range has touched low of $37.26 and a $75.80 high. Its shares traded lower over the last trading session, losing -1.18% on 06/26/20. The shares fell to a low of $72.91 before closing at $73.03. Intraday shares traded counted 0.67 million, which was -208.38% lower than its 30-day average trading volume of 215.75K. GSHD’s previous close was $73.90 while the outstanding shares total 15.56M.
Investors have identified the Insurance – Diversified company Goosehead Insurance 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 $2.68 billion, 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.
Goosehead Insurance Inc (GSHD) 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. In terms of their assets, the company currently has 25219000 million total, with 11343000 million as their total liabilities.
GSHD were able to record -2.44 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -3.31 million. In cash movements, the company had a total of -1.48 million as operating cash flow.
Potential earnings growth for Goosehead Insurance Inc (GSHD)
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, Goosehead Insurance Inc recorded a total of 20.43 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -13.26% coming in sequential stages and their sales for the third quarter increasing by 32.45%.
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 20.43 million trying to sell their products during the last quarter, with the result yielding a gross income of 20.22 million. This allows shareholders to hold on to 15.56M with the revenue now reading -0.01 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.03 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.22 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 GSHD sounds very interesting.
Is the stock of GSHD attractive?
In related news, Chief Financial Officer, Colby Mark S. sold 1,800 shares of the company’s stock in a transaction that recorded on Jun 24. The sale was performed at an average price of 75.17, for a total value of 135,306. As the sale deal closes, the President and COO, Colby Michael C. now sold 3,166 shares of the company’s stock, valued at 238,109. Also, President and COO, Colby Michael C. sold 2,149 shares of the company’s stock in a deal that was recorded on Jun 23. The shares were price at an average price of 72.29 per share, with a total market value of 155,358. Following this completion of acquisition, the Chief Financial Officer, Colby Mark S. now holds 3,514 shares of the company’s stock, valued at 254,772. In the last 6 months, insiders have changed their ownership in shares of company stock by 9.70%.
4 out of 5 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Goosehead Insurance Inc. 0 analysts has assigned a Sell rating on the GSHD stock. The 12-month mean consensus price target for the company’s shares has been set at $65.33.