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Air Transport Services Group Inc. (NASDAQ:ATSG) Undervalued? Fundamentals Hard To Beat?

Air Transport Services Group Inc. (NASDAQ:ATSG) shares traded lower over the last trading session, losing -4.08% on 05/20/21. The shares fell to a low of $24.13 before closing at $24.21. Intraday shares traded counted 0.54 million, which was -20.65% lower than its 30-day average trading volume of 446.40K. ATSG’s previous close was $25.24 while the outstanding shares total 59.45M. The firm has a beta of 0.61. The stock’s Relative Strength Index (RSI) is 32.92, with weekly volatility at 2.57% and ATR at 0.83. The ATSG stock’s 52-week price range has touched low of $20.33 and a $32.43 high.

Investors have identified the Integrated Freight & Logistics company Air Transport Services 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 $1.78 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.

Air Transport Services Group Inc. (ATSG) 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 ATSG, the company has in raw cash 51.66 million on their books with 0.62 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 285.18 million total, with 277.63 million as their total liabilities.

ATSG were able to record -0.99 million as free cash flow during the 08/09/2021 quarter of the year, this saw their quarterly net cash flow reduce by 11.94 million. In cash movements, the company had a total of 124.45 million as operating cash flow.

Potential earnings growth for Air Transport Services Group Inc. (ATSG)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/09/2021 quarter of the year, Air Transport Services Group Inc. recorded a total of 376.09 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -3.51% coming in sequential stages and their sales for the 08/09/2021 quarter reducing by -6.19%.

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 30.44 million trying to sell their products during the last quarter, with the result yielding a gross income of 345.65 million. This allows shareholders to hold on to 59.45M with the recently reported earning now reading 0.49 cents per share. This is a figure that compared to analyst’s prediction for their 08/09/2021 (0.19 cents a share).

Having a look at the company’s valuation, the company is expected to record 1.82 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 ATSG sounds very interesting.

Is the stock of ATSG attractive?

In related news, Director, HETE JOSEPH C sold 10,000 shares of the company’s stock in a transaction that recorded on Apr 21. The sale was performed at an average price of 27.89, for a total value of 278,900. As the sale deal closes, the VP Corporate Development, Smethwick Edward Russell now sold 5,826 shares of the company’s stock, valued at 170,003. Also, Director, HETE JOSEPH C sold 10,000 shares of the company’s stock in a deal that was recorded on Mar 22. The shares were price at an average price of 30.78 per share, with a total market value of 307,800. Following this completion of acquisition, the Subsidiary President – CAM, Templeton Brady Thomas now holds 14,560 shares of the company’s stock, valued at 450,195. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.10%.

6 out of 6 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Air Transport Services Group Inc.. 0 analysts has assigned a Sell rating on the ATSG stock. The 12-month mean consensus price target for the company’s shares has been set at $35.50.

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