Penumbra Inc. (NYSE:PEN) shares traded lower over the last trading session, losing -8.91% on 12/08/20. The shares fell to a low of $182.6152 before closing at $204.07. Intraday shares traded counted 6.43 million, which was -1137.7% lower than its 30-day average trading volume of 519.60K. PEN’s previous close was $224.02 while the outstanding shares total 36.21M. The firm has a beta of 0.49. The stock’s Relative Strength Index (RSI) is 36.33, with weekly volatility at 8.51% and ATR at 16.42. The PEN stock’s 52-week price range has touched low of $121.80 and a $277.00 high.
Investors have identified the Medical Devices company Penumbra 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 $7.28 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.
Penumbra Inc. (PEN) 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. In terms of their assets, the company currently has 590.2 million total, with 108.06 million as their total liabilities.
PEN were able to record -52.16 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 7.34 million. In cash movements, the company had a total of -31.16 million as operating cash flow.
Potential earnings growth for Penumbra Inc. (PEN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Penumbra Inc. recorded a total of 151.08 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 7.66% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 30.43%.
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 60.15 million trying to sell their products during the last quarter, with the result yielding a gross income of 90.92 million. This allows shareholders to hold on to 36.21M with the recently reported earning now reading -0.27 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.06 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.06 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 PEN sounds very interesting.
Is the stock of PEN attractive?
In related news, President, International, Pray James Robert sold 5,000 shares of the company’s stock in a transaction that recorded on Dec 01. The sale was performed at an average price of 215.93, for a total value of 1,079,655. As the sale deal closes, the President, International, Pray James Robert now sold 5,000 shares of the company’s stock, valued at 1,293,039. Also, Director, Grewal Harpreet sold 567 shares of the company’s stock in a deal that was recorded on Nov 16. The shares were price at an average price of 262.77 per share, with a total market value of 148,991. Following this completion of acquisition, the Director, O’Rourke Bridget now holds 65 shares of the company’s stock, valued at 17,645. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.80%.
6 out of 7 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Penumbra Inc.. 0 analysts has assigned a Sell rating on the PEN stock. The 12-month mean consensus price target for the company’s shares has been set at $270.17.