Performant Financial Corporation (NASDAQ:PFMT) Relative Strength Index (RSI) is 66.59, with weekly volatility at 10.46% and ATR at 0.08. The PFMT stock’s 52-week price range has touched low of $0.54 and a $2.17 high. Intraday shares traded counted 1.06 million, which was -76.99% lower than its 30-day average trading volume of 599.26K. Its shares traded higher over the last trading session, gaining 20.66% on 12/22/20. The shares fell to a low of $0.83 before closing at $0.99. PFMT’s previous close was $0.82 while the outstanding shares total 54.68M. The firm has a beta of -0.82.
Investors have identified the Specialty Business Services company Performant Financial 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 $53.23 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.
Performant Financial Corporation (PFMT) 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 PFMT, the company has in raw cash 17.28 million on their books with 60.44 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 49.12 million total, with 75.49 million as their total liabilities.
PFMT were able to record 15.13 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 12.28 million. In cash movements, the company had a total of 17.99 million as operating cash flow.
Potential earnings growth for Performant Financial Corporation (PFMT)
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, Performant Financial Corporation recorded a total of 36.23 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.9% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 6.74%.
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 36.23 million trying to sell their products during the last quarter, with the result yielding a gross income of 34.34 million. This allows shareholders to hold on to 54.68M with the recently reported earning now reading 0.04 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.05 cents a share).
Is the stock of PFMT attractive?
In related news, 10% Owner, PRESCOTT GROUP CAPITAL MANAGEM bought 3,258,424 shares of the company’s stock in a transaction that recorded on Mar 24. The purchase was performed at an average price of 0.72, for a total value of 2,346,065. As the purchase deal closes, the 10% Owner, PRESCOTT GROUP CAPITAL MANAGEM now bought 987,604 shares of the company’s stock, valued at 859,215. Also, 10% Owner, PRESCOTT GROUP CAPITAL MANAGEM bought 9,639 shares of the company’s stock in a deal that was recorded on Jan 29. The shares were cost at an average price of 0.89 per share, with a total market value of 8,582. Following this completion of disposal, the 10% Owner, PRESCOTT GROUP CAPITAL MANAGEM now holds 3,524 shares of the company’s stock, valued at 3,501. In the last 6 months, insiders have changed their ownership in shares of company stock by 31.28%.