Mimecast Limited (NASDAQ:MIME) has a beta of 1.26, a 12-month trailing P/E ratio of 117.44, and a growth ratio of 8.16. The stock’s Relative Strength Index (RSI) is 67.40, with weekly volatility at 3.14% and ATR at 1.58. The MIME stock’s 52-week price range has touched low of $37.03 and a $59.48 high. Its shares traded higher over the last trading session, gaining 1.51% on 05/20/21. The shares fell to a low of $47.19 before closing at $47.80. Intraday shares traded counted 0.45 million, which was 37.28% higher than its 30-day average trading volume of 717.95K. MIME’s previous close was $47.09 while the outstanding shares total 63.99M.
Investors have identified the Software – Infrastructure company Mimecast Limited 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 $3.08 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.
Mimecast Limited (MIME) 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 MIME, the company has in raw cash 270.9 million on their books with 8.46 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 402.51 million total, with 321.5 million as their total liabilities.
MIME were able to record 64.39 million as free cash flow during the 08/09/2021 quarter of the year, this saw their quarterly net cash flow reduce by 96.94 million. In cash movements, the company had a total of 95.33 million as operating cash flow.
Potential earnings growth for Mimecast Limited (MIME)
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, Mimecast Limited recorded a total of 129.64 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 15.03% coming in sequential stages and their sales for the 08/09/2021 quarter increasing by 5.36%.
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 31.57 million trying to sell their products during the last quarter, with the result yielding a gross income of 98.06 million. This allows shareholders to hold on to 63.99M with the recently reported earning now reading 0.17 cents per share. This is a figure that compared to analyst’s prediction for their 08/09/2021 (0.13 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.79 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 MIME sounds very interesting.
Is the stock of MIME attractive?
In related news, Director, Murray Neil sold 35,000 shares of the company’s stock in a transaction that recorded on May 19. The sale was performed at an average price of 46.32, for a total value of 1,621,148. As the sale deal closes, the Chief Executive Officer, Bauer Peter now sold 17,500 shares of the company’s stock, valued at 810,911. Also, Sr. Vice Pres., Engineering, WALSH JOHN J JR sold 2,000 shares of the company’s stock in a deal that was recorded on May 17. The shares were price at an average price of 47.04 per share, with a total market value of 94,080. Following this completion of acquisition, the Chief Revenue Officer, DiMarino Dino now holds 4,500 shares of the company’s stock, valued at 214,830. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.60%.
11 out of 16 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Mimecast Limited. 1 analysts has assigned a Sell rating on the MIME stock. The 12-month mean consensus price target for the company’s shares has been set at $54.44.