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SemiLEDs Corporation (NASDAQ:LEDS): A Fundamentally Weighted Stock for Long-Term Investors

SemiLEDs Corporation (NASDAQ:LEDS) shares traded higher over the last trading session, gaining 19.95% on 05/25/21. The shares fell to a low of $7.85 before closing at $9.50. Intraday shares traded counted 16.03 million, which was -223.9% lower than its 30-day average trading volume of 4.95M. LEDS’s previous close was $7.92 while the outstanding shares total 4.03M. The firm has a beta of 1.36. The stock’s Relative Strength Index (RSI) is 63.90, with weekly volatility at 18.26% and ATR at 1.59. The LEDS stock’s 52-week price range has touched low of $2.43 and a $13.44 high.

Investors have identified the Semiconductors company SemiLEDs 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 $40.09 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.

SemiLEDs Corporation (LEDS) 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 LEDS, the company has in raw cash 2.17 million on their books with 5.02 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 6.62 million total, with 9.18 million as their total liabilities.

LEDS were able to record -0.72 million as free cash flow during the 07/14/2021 quarter of the year, this saw their quarterly net cash flow reduce by -0.73 million. In cash movements, the company had a total of -0.63 million as operating cash flow.

Potential earnings growth for SemiLEDs Corporation (LEDS)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/14/2021 quarter of the year, SemiLEDs Corporation recorded a total of 1.21 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -27.45% coming in sequential stages and their sales for the 07/14/2021 quarter increasing by 40.38%.

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 0.96 million trying to sell their products during the last quarter, with the result yielding a gross income of 0.24 million. This allows shareholders to hold on to 4.03M with the recently reported earning now reading -0.06 cents per share. This is a figure that compared to analyst’s prediction for their 07/14/2021 (-0.23 cents a share).

Is the stock of LEDS attractive?

In related news, CFO, Lee Hsin-Liang Christopher sold 11,500 shares of the company’s stock in a transaction that recorded on Feb 09. The sale was performed at an average price of 5.00, for a total value of 57,500. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.

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