Shenandoah Telecommunications Company (NASDAQ:SHEN) shares traded higher over the last trading session, gaining 5.44% on 06/29/20. The shares fell to a low of $47.23 before closing at $49.23. Intraday shares traded counted 0.14 million, which was 32.47% higher than its 30-day average trading volume of 208.48K. SHEN’s previous close was $46.69 while the outstanding shares total 49.89M. The firm has a beta of 0.19, a 12-month trailing P/E ratio of 45.42, and a growth ratio of 1.86. The stock’s Relative Strength Index (RSI) is 41.73, with weekly volatility at 5.44% and ATR at 2.31. The SHEN stock’s 52-week price range has touched low of $29.61 and a $59.93 high.
Investors have identified the Telecom Services company Shenandoah Telecommunications Company 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 $2.74 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.
Shenandoah Telecommunications Company (SHEN) 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 SHEN, the company has in raw cash 120.23 million on their books with 75.88 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 an incline. In terms of their assets, the company currently has 257909000 million total, with 139644000 million as their total liabilities.
SHEN were able to record 28.81 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 18.58 million. In cash movements, the company had a total of 61.11 million as operating cash flow.
Potential earnings growth for Shenandoah Telecommunications Company (SHEN)
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, Shenandoah Telecommunications Company recorded a total of 153.19 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -3.69% coming in sequential stages and their sales for the third quarter reducing by -5.1%.
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 130.14 million trying to sell their products during the last quarter, with the result yielding a gross income of 23.05 million. This allows shareholders to hold on to 49.89M with the revenue now reading 0.27 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.27 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.10 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 SHEN sounds very interesting.
Is the stock of SHEN attractive?
In the last 6 months, insiders have changed their ownership in shares of company stock by 1.00%.
0 out of 3 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Shenandoah Telecommunications Company. 1 analysts has assigned a Sell rating on the SHEN stock. The 12-month mean consensus price target for the company’s shares has been set at $42.67.