FAT Brands Inc. (NASDAQ:FAT) stock’s Relative Strength Index (RSI) is 75.65, with weekly volatility at 15.52% and ATR at 0.74. The FAT stock’s 52-week price range has touched low of $1.72 and a $10.25 high. Its shares traded higher over the last trading session, gaining 27.73% on 12/11/20. The shares fell to a low of $7.20 before closing at $7.89. Intraday shares traded counted 4.16 million, which was -13106.97% lower than its 30-day average trading volume of 31.49K. FAT’s previous close was $6.18 while the outstanding shares total 11.91M.
Investors have identified the Restaurants company FAT Brands 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 $73.69 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.
FAT Brands Inc. (FAT) 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 FAT, the company has in raw cash 13.87 million on their books with 1.57 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 31.19 million total, with 31.87 million as their total liabilities.
FAT were able to record -8.74 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 14.24 million. In cash movements, the company had a total of -8.51 million as operating cash flow.
Potential earnings growth for FAT Brands Inc. (FAT)
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, FAT Brands Inc. recorded a total of 4.09 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -58.57% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 24.02%.
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 4.09 million trying to sell their products during the last quarter, with the result yielding a gross income of 4.88 million. This allows shareholders to hold on to 11.91M with the recently reported earning now reading -0.05 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (-0.02 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.20 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 FAT sounds very interesting.
Is the stock of FAT attractive?
In related news, Chief Executive Officer, WIEDERHORN ANDREW bought 21,832 shares of the company’s stock in a transaction that recorded on Aug 11. The purchase was performed at an average price of 3.21, for a total value of 70,000. As the purchase deal closes, the Chief Executive Officer, WIEDERHORN ANDREW now bought 500 shares of the company’s stock, valued at 1,922. Also, Director, Junger John Squire bought 496 shares of the company’s stock in a deal that was recorded on Jun 10. The shares were cost at an average price of 3.88 per share, with a total market value of 1,926. Following this completion of disposal, the Director, Junger John Squire now holds 148 shares of the company’s stock, valued at 574. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.40%.
1 out of 1 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on FAT Brands Inc.. 0 analysts has assigned a Sell rating on the FAT stock. The 12-month mean consensus price target for the company’s shares has been set at $8.00.