Workhorse Group Inc. (NASDAQ:WKHS) has a beta of 3.57. The stock’s Relative Strength Index (RSI) is 55.35, with weekly volatility at 7.33% and ATR at 2.02. The WKHS stock’s 52-week price range has touched low of $1.32 and a $30.99 high. Its shares traded higher over the last trading session, gaining 12.78% on 12/22/20. The shares fell to a low of $20.83 before closing at $23.30. Intraday shares traded counted 17.89 million, which was 10.31% higher than its 30-day average trading volume of 19.95M. WKHS’s previous close was $20.66 while the outstanding shares total 120.53M.
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 $2.81 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 99.71 million total, with 132.09 million as their total liabilities.
WKHS were able to record -39.28 million as free cash flow during the Q3 2020 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 Q3 2020 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 Q3 2020 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 recently reported earning now reading -0.78 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (-0.78 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.46 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, CEO and President, Hughes Duane sold 55,989 shares of the company’s stock in a transaction that recorded on Dec 15. The sale was performed at an average price of 21.61, for a total value of 1,209,922. As the sale deal closes, the Chief Financial Officer, Schrader Steve now sold 15,152 shares of the company’s stock, valued at 332,132. Also, Director, DeMott Harry sold 62,450 shares of the company’s stock in a deal that was recorded on Dec 14. The shares were price at an average price of 21.92 per share, with a total market value of 1,368,904. Following this completion of acquisition, the Vice President-Finance, Furey Anthony Daly now holds 71,862 shares of the company’s stock, valued at 1,575,215. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.30%.
4 out of 7 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Workhorse Group Inc.. 0 analysts has assigned a Sell rating on the WKHS stock. The 12-month mean consensus price target for the company’s shares has been set at $24.00.