Penumbra Inc. (NYSE:PEN) shares fell to a low of $185.39 before closing at $187.95. Intraday shares traded counted 0.22 million, which was 12.59% higher than its 30-day average trading volume of 248.87K. PEN’s previous close was $185.27 while the outstanding shares total 35.04M. The firm has a beta of 0.63, a 12-month trailing P/E ratio of 181.42, and a growth ratio of 4.00. The stock’s Relative Strength Index (RSI) is 62.39, with weekly volatility at 3.37% and ATR at 6.80. The PEN stock’s 52-week price range has touched low of $121.80 and a $194.93 high. The stock traded higher over the last trading session, gaining 1.45% on 07/02/20.
Investors have identified the Medical Devices company Penumbra 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 $6.66 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.
Penumbra Inc. (PEN) 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 PEN, the company has in raw cash 72.46 million on their books with 4.43 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 453740000 million total, with 88074000 million as their total liabilities.
PEN were able to record -16.05 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -0.32 million. In cash movements, the company had a total of -5.92 million as operating cash flow.
Potential earnings growth for Penumbra Inc. (PEN)
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, Penumbra Inc. recorded a total of 137.33 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 6.47% coming in sequential stages and their sales for the third quarter reducing by -5.78%.
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 49.32 million trying to sell their products during the last quarter, with the result yielding a gross income of 88.01 million. This allows shareholders to hold on to 35.04M with the revenue now reading 0.04 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.10 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.98 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 PEN sounds very interesting.
Is the stock of PEN attractive?
In related news, CEO and President, Elsesser Adam sold 8,000 shares of the company’s stock in a transaction that recorded on Jun 11. The sale was performed at an average price of 166.88, for a total value of 1,335,062. As the sale deal closes, the CEO and President, Elsesser Adam now sold 8,000 shares of the company’s stock, valued at 1,501,356. Also, Chief Innovator, Bose Arani sold 10,000 shares of the company’s stock in a deal that was recorded on May 07. The shares were price at an average price of 185.07 per share, with a total market value of 1,850,700. Following this completion of acquisition, the Chief Innovator, Bose Arani now holds 9,100 shares of the company’s stock, valued at 1,688,286. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.80%.
6 out of 6 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Penumbra Inc.. 0 analysts has assigned a Sell rating on the PEN stock. The 12-month mean consensus price target for the company’s shares has been set at $199.75.