J2 Global Inc. (NASDAQ:JCOM) previous close was $55.46 while the outstanding shares total 47.62M. The firm has a beta of 0.67, a 12-month trailing P/E ratio of 15.71, and a growth ratio of 1.96. JCOM’s shares traded higher over the last trading session, gaining 1.33% on 07/30/20. The shares fell to a low of $53.245 before closing at $56.20. Intraday shares traded counted 1.07 million, which was -31.83% lower than its 30-day average trading volume of 808.93K. The stock’s Relative Strength Index (RSI) is 34.17, with weekly volatility at 2.97% and ATR at 2.14. The JCOM stock’s 52-week price range has touched low of $54.05 and a $104.57 high.
Investors have identified the Software – Infrastructure company J2 Global 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 $2.70 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.
J2 Global Inc. (JCOM) 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 JCOM, the company has in raw cash 526.55 million on their books with 26.71 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 782095000 million total, with 368681000 million as their total liabilities.
JCOM were able to record 75.15 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -49.06 million. In cash movements, the company had a total of 102.04 million as operating cash flow.
Potential earnings growth for J2 Global Inc. (JCOM)
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, J2 Global Inc. recorded a total of 332.39 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9.78% coming in sequential stages and their sales for the third quarter reducing by -22.02%.
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 59.13 million trying to sell their products during the last quarter, with the result yielding a gross income of 273.26 million. This allows shareholders to hold on to 47.62M with the revenue now reading -0.13 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.35 cents a share).
Having a look at the company’s valuation, the company is expected to record 6.62 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 JCOM sounds very interesting.
Is the stock of JCOM attractive?
In related news, Chief Executive Officer, Shah Vivek bought 13,354 shares of the company’s stock in a transaction that recorded on Mar 12. The purchase was performed at an average price of 74.74, for a total value of 998,078. As the purchase deal closes, the Director, ROSS STEPHEN now sold 2,974 shares of the company’s stock, valued at 249,548. Also, Director, FAY SARAH ANN bought 282 shares of the company’s stock in a deal that was recorded on Mar 03. The shares were cost at an average price of 88.00 per share, with a total market value of 24,816. Following this completion of disposal, the Director, CRESCI ROBERT J now holds 18,281 shares of the company’s stock, valued at 1,777,275. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.30%.
9 out of 13 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on J2 Global Inc.. 0 analysts has assigned a Sell rating on the JCOM stock. The 12-month mean consensus price target for the company’s shares has been set at $95.17.