R. R. Donnelley & Sons Company (NYSE:RRD) shares traded lower over the last trading session, losing -0.71% on 05/21/21. The shares fell to a low of $5.24 before closing at $5.60. Intraday shares traded counted 1.89 million, which was 15.1% higher than its 30-day average trading volume of 2.23M. RRD’s previous close was $5.64 while the outstanding shares total 72.70M. The firm has a beta of 2.81. The stock’s Relative Strength Index (RSI) is 65.00, with weekly volatility at 9.37% and ATR at 0.42. The RRD stock’s 52-week price range has touched low of $1.01 and a $6.16 high.
Investors have identified the Specialty Business Services company R. R. Donnelley & Sons Company 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 $407.18 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.
R. R. Donnelley & Sons Company (RRD) 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 RRD, the company has in raw cash 261.6 million on their books with 140.4 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 1.64 billion total, with 1.26 billion as their total liabilities.
RRD were able to record -31.9 million as free cash flow during the 08/03/2021 quarter of the year, this saw their quarterly net cash flow reduce by -37.0 million. In cash movements, the company had a total of -18.9 million as operating cash flow.
Potential earnings growth for R. R. Donnelley & Sons Company (RRD)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/03/2021 quarter of the year, R. R. Donnelley & Sons Company recorded a total of 1.17 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -3.73% coming in sequential stages and their sales for the 08/03/2021 quarter reducing by -1.94%.
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 949.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 224.1 million. This allows shareholders to hold on to 72.70M with the recently reported earning now reading -0.02 cents per share. This is a figure that compared to analyst’s prediction for their 08/03/2021 (-0.09 cents a share).
Is the stock of RRD attractive?
In related news, 10% Owner, Chatham Asset Management, LLC bought 663,889 shares of the company’s stock in a transaction that recorded on May 21. The purchase was performed at an average price of 5.61, for a total value of 3,724,417. As the purchase deal closes, the 10% Owner, Chatham Asset Management, LLC now bought 236,101 shares of the company’s stock, valued at 1,296,194. Also, 10% Owner, Chatham Asset Management, LLC bought 523,095 shares of the company’s stock in a deal that was recorded on May 19. The shares were cost at an average price of 5.29 per share, with a total market value of 2,767,173. In the last 6 months, insiders have changed their ownership in shares of company stock by 4.70%.
1 out of 1 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on R. R. Donnelley & Sons Company. 0 analysts has assigned a Sell rating on the RRD stock. The 12-month mean consensus price target for the company’s shares has been set at $6.00.