Pacific Ethanol Inc. (NASDAQ:PEIX) shares fell to a low of $6.00 before closing at $6.62. Intraday shares traded counted 6.71 million, which was 7.9% higher than its 30-day average trading volume of 7.29M. PEIX’s previous close was $6.04 while the outstanding shares total 58.50M. The firm has a beta of 3.42. The stock’s Relative Strength Index (RSI) is 51.39, with weekly volatility at 11.36% and ATR at 0.73. The PEIX stock’s 52-week price range has touched low of $0.22 and a $11.44 high. The stock traded higher over the last trading session, gaining 9.60% on 12/04/20.
Investors have identified the Oil & Gas Refining & Marketing company Pacific Ethanol 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 $436.79 million, 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.
Pacific Ethanol Inc. (PEIX) 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 PEIX, the company has in raw cash 38.73 million on their books with 74.9 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 137715000 million total, with 115105000 million as their total liabilities.
PEIX were able to record 70.83 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 19.73 million. In cash movements, the company had a total of 75.69 million as operating cash flow.
Potential earnings growth for Pacific Ethanol Inc. (PEIX)
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, Pacific Ethanol Inc. recorded a total of 204.73 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -78.36% coming in sequential stages and their sales for the third quarter reducing by -3.59%.
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 183.8 million trying to sell their products during the last quarter, with the result yielding a gross income of 20.93 million. This allows shareholders to hold on to 58.50M with the revenue now reading 0.26 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.20 cents a share).
Having a look at the company’s valuation, the company is expected to record -1.40 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 PEIX sounds very interesting.
Is the stock of PEIX attractive?
In related news, VP, Gen. Counsel & Secy, Wright Christopher W sold 37,179 shares of the company’s stock in a transaction that recorded on Dec 01. The sale was performed at an average price of 6.02, for a total value of 223,632. As the sale deal closes, the Chief Financial Officer, McGregor Bryon T now bought 5,000 shares of the company’s stock, valued at 17,750. Also, Chief Financial Officer, McGregor Bryon T bought 5,000 shares of the company’s stock in a deal that was recorded on Aug 26. The shares were price at an average price of 3.30 per share, with a total market value of 16,500. Following this completion of acquisition, the Co-President & Co-CEO, KOEHLER NEIL M now holds 50,000 shares of the company’s stock, valued at 167,739. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.50%.