Ralph Lauren Corporation (NYSE:RL) Relative Strength Index (RSI) is 49.77, with weekly volatility at 3.80% and ATR at 3.00. The RL stock’s 52-week price range has touched low of $59.82 and a $128.29 high. Intraday shares traded counted 0.94 million, which was 24.53% higher than its 30-day average trading volume of 1.25M. Its shares traded lower over the last trading session, losing -1.89% on 10/13/20. The shares fell to a low of $71.32 before closing at $72.25. RL’s previous close was $73.64 while the outstanding shares total 73.10M. The firm has a beta of 1.32.
Investors have identified the Apparel Manufacturing company Ralph Lauren Corporation 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 $5.31 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.
Ralph Lauren Corporation (RL) 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 RL, the company has in raw cash 2.45 billion on their books with 299.9 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 3857000000 million total, with 1486900000 million as their total liabilities.
RL were able to record -91.6 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 831.1 million. In cash movements, the company had a total of -70.3 million as operating cash flow.
Potential earnings growth for Ralph Lauren Corporation (RL)
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, Ralph Lauren Corporation recorded a total of 487.5 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -193.09% coming in sequential stages and their sales for the third quarter reducing by -161.35%.
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 138.8 million trying to sell their products during the last quarter, with the result yielding a gross income of 348.7 million. This allows shareholders to hold on to 73.10M with the revenue now reading -1.75 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-1.53 cents a share).
Having a look at the company’s valuation, the company is expected to record 6.56 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 RL sounds very interesting.
Is the stock of RL attractive?
In related news, 10% Owner, Lauren Family, L.L.C. sold 71,436 shares of the company’s stock in a transaction that recorded on Dec 12. The sale was performed at an average price of 115.50, for a total value of 8,251,080. As the sale deal closes, the 10% Owner, Lauren Family, L.L.C. now sold 71,428 shares of the company’s stock, valued at 7,757,574. Also, 10% Owner, Lauren Family, L.L.C. sold 71,428 shares of the company’s stock in a deal that was recorded on Nov 14. The shares were price at an average price of 111.62 per share, with a total market value of 7,972,670. Following this completion of acquisition, the EVP, Chief Commercial Officer, Smith Andrew Howard now holds 3,059 shares of the company’s stock, valued at 343,495. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.30%.
7 out of 21 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on Ralph Lauren Corporation. 1 analysts has assigned a Sell rating on the RL stock. The 12-month mean consensus price target for the company’s shares has been set at $84.97.