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Are Investors Unfairly Punishing Sharps Compliance Corp. (NASDAQ:SMED)?

Sharps Compliance Corp. (NASDAQ:SMED) shares fell to a low of $13.71 before closing at $13.78. Intraday shares traded counted 0.42 million, which was -98.21% lower than its 30-day average trading volume of 210.90K. SMED’s previous close was $14.48 while the outstanding shares total 16.56M. The firm has a beta of -0.19, a 12-month trailing P/E ratio of 23.68, and a growth ratio of 1.05. The stock’s Relative Strength Index (RSI) is 35.18, with weekly volatility at 4.89% and ATR at 0.90. The SMED stock’s 52-week price range has touched low of $5.45 and a $18.67 high. The stock traded lower over the last trading session, losing -4.83% on 05/27/21.

Investors have identified the Waste Management company Sharps Compliance Corp. 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 $235.09 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.

Sharps Compliance Corp. (SMED) 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 SMED, the company has in raw cash 11.22 million on their books with 2.84 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 39.49 million total, with 18.82 million as their total liabilities.

SMED were able to record 4.9 million as free cash flow during the 08/18/2021 quarter of the year, this saw their quarterly net cash flow reduce by 5.8 million. In cash movements, the company had a total of 7.47 million as operating cash flow.

Potential earnings growth for Sharps Compliance Corp. (SMED)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/18/2021 quarter of the year, Sharps Compliance Corp. recorded a total of 27.53 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 62.17% coming in sequential stages and their sales for the 08/18/2021 quarter increasing by 38.2%.

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 14.13 million trying to sell their products during the last quarter, with the result yielding a gross income of 13.4 million. This allows shareholders to hold on to 16.56M with the recently reported earning now reading 0.41 cents per share. This is a figure that compared to analyst’s prediction for their 08/18/2021 (0.40 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.60 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 SMED sounds very interesting.

Is the stock of SMED attractive?

In related news, Vice President of Marketing, Halligan Dennis sold 17,482 shares of the company’s stock in a transaction that recorded on May 21. The sale was performed at an average price of 16.63, for a total value of 290,699. As the sale deal closes, the CEO and President, TUSA DAVID P now sold 23,024 shares of the company’s stock, valued at 380,356. Also, CEO and President, TUSA DAVID P sold 8,000 shares of the company’s stock in a deal that was recorded on May 19. The shares were price at an average price of 16.60 per share, with a total market value of 132,809. Following this completion of acquisition, the CEO and President, TUSA DAVID P now holds 10,799 shares of the company’s stock, valued at 180,883. In the last 6 months, insiders have changed their ownership in shares of company stock by 11.00%.

5 out of 5 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Sharps Compliance Corp.. 0 analysts has assigned a Sell rating on the SMED stock. The 12-month mean consensus price target for the company’s shares has been set at $20.40.

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