Can Workhorse Group Inc. (NASDAQ:WKHS) Offer Investors Safety?

Workhorse Group Inc. (NASDAQ:WKHS) previous close was $25.23 while the outstanding shares total 120.53M. The firm has a beta of 3.62. WKHS’s shares traded lower over the last trading session, losing -19.02% on 12/02/20. The shares fell to a low of $18.93 before closing at $20.43. Intraday shares traded counted 33.95 million, which was -44.84% lower than its 30-day average trading volume of 23.44M. The stock’s Relative Strength Index (RSI) is 43.00, with weekly volatility at 9.89% and ATR at 2.62. The WKHS stock’s 52-week price range has touched low of $1.32 and a $30.99 high.

Investors have identified the Auto Manufacturers company Workhorse Group 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 $2.52 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.

Workhorse Group Inc. (WKHS) 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 WKHS, the company has in raw cash 80.22 million on their books with 122.68 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 99709000 million total, with 132086000 million as their total liabilities.

WKHS were able to record -39.28 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 55.35 million. In cash movements, the company had a total of -37.64 million as operating cash flow.

Potential earnings growth for Workhorse Group Inc. (WKHS)

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, Workhorse Group Inc. recorded a total of 0.56 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 99.29% coming in sequential stages and their sales for the third quarter increasing by 83.72%.

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 2.81 million trying to sell their products during the last quarter, with the result yielding a gross income of -2.25 million. This allows shareholders to hold on to 120.53M with the revenue now reading -0.78 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.11 cents a share).

Having a look at the company’s valuation, the company is expected to record -0.07 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 WKHS sounds very interesting.

Is the stock of WKHS attractive?

In related news, Director, Mader Pamela S. sold 8,000 shares of the company’s stock in a transaction that recorded on Nov 24. The sale was performed at an average price of 30.00, for a total value of 240,000. As the sale deal closes, the Director, Samuels H. Benjamin now sold 66,666 shares of the company’s stock, valued at 1,667,573. Also, Director, Samuels H. Benjamin sold 33,333 shares of the company’s stock in a deal that was recorded on Nov 20. The shares were price at an average price of 25.00 per share, with a total market value of 833,448. Following this completion of acquisition, the Director, Chess Raymond Joseph now holds 4,000 shares of the company’s stock, valued at 77,040. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.30%.


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