Ormat Technologies Inc. (NYSE:ORA) shares fell to a low of $61.71 before closing at $62.22. Intraday shares traded counted 0.35 million, which was -2.25% lower than its 30-day average trading volume of 341.65K. ORA’s previous close was $63.55 while the outstanding shares total 51.04M. The firm has a beta of 0.66, a 12-month trailing P/E ratio of 36.22, and a growth ratio of 3.29. The stock’s Relative Strength Index (RSI) is 39.48, with weekly volatility at 3.09% and ATR at 2.28. The ORA stock’s 52-week price range has touched low of $55.22 and a $87.07 high. The stock traded lower over the last trading session, losing -2.09% on 07/06/20.
Investors have identified the Utilities – Renewable company Ormat Technologies 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 $3.17 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.
Ormat Technologies Inc. (ORA) 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 ORA, the company has in raw cash 319.78 million on their books with 417.35 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 584286000 million total, with 567319000 million as their total liabilities.
ORA were able to record -0.62 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 166.67 million. In cash movements, the company had a total of 79.76 million as operating cash flow.
Potential earnings growth for Ormat Technologies Inc. (ORA)
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, Ormat Technologies Inc. recorded a total of 192.11 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -3.6% coming in sequential stages and their sales for the third quarter reducing by -0.17%.
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 110.3 million trying to sell their products during the last quarter, with the result yielding a gross income of 81.82 million. This allows shareholders to hold on to 51.04M with the revenue now reading 0.51 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.50 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.46 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 ORA sounds very interesting.
Is the stock of ORA attractive?
In related news, EVP, Product Segment, Argas Shlomi sold 1,521 shares of the company’s stock in a transaction that recorded on Dec 17. The sale was performed at an average price of 77.70, for a total value of 118,182. As the sale deal closes, the Director, FALK DAN now sold 7,500 shares of the company’s stock, valued at 583,275. Also, Director, Wong Byron G. sold 1,460 shares of the company’s stock in a deal that was recorded on Nov 25. The shares were price at an average price of 77.01 per share, with a total market value of 112,435. Following this completion of acquisition, the E.V.P. Electricty Segment, Krieger Zvi now holds 808 shares of the company’s stock, valued at 61,812. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.14%.
0 out of 6 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Ormat Technologies Inc.. 0 analysts has assigned a Sell rating on the ORA stock. The 12-month mean consensus price target for the company’s shares has been set at $74.00.