Are Jazz Pharmaceuticals plc (NASDAQ:JAZZ)’s Fundamentals Enough to Outperform

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) has a beta of 1.04, a 12-month trailing P/E ratio of 19.29, and a growth ratio of 0.67. The stock’s Relative Strength Index (RSI) is 54.44, with weekly volatility at 1.96% and ATR at 4.11. The JAZZ stock’s 52-week price range has touched low of $101.81 and a $182.56 high. Its shares traded lower over the last trading session, losing -1.45% on 05/27/21. The shares fell to a low of $175.54 before closing at $175.77. Intraday shares traded counted 0.71 million, which was -11.16% lower than its 30-day average trading volume of 640.12K. JAZZ’s previous close was $178.36 while the outstanding shares total 56.47M.

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Investors have identified the Biotechnology company Jazz Pharmaceuticals plc 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 $9.92 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.

Jazz Pharmaceuticals plc (JAZZ) 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 JAZZ, the company has in raw cash 2.1 billion on their books with 248.61 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 3.17 billion total, with 752.09 million as their total liabilities.

JAZZ were able to record 282.83 million as free cash flow during the 08/10/2021 quarter of the year, this saw their quarterly net cash flow reduce by 1.04 billion. In cash movements, the company had a total of 285.0 million as operating cash flow.

Potential earnings growth for Jazz Pharmaceuticals plc (JAZZ)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/10/2021 quarter of the year, Jazz Pharmaceuticals plc recorded a total of 607.58 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 11.99% coming in sequential stages and their sales for the 08/10/2021 quarter reducing by -9.54%.

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 40.19 million trying to sell their products during the last quarter, with the result yielding a gross income of 567.39 million. This allows shareholders to hold on to 56.47M with the recently reported earning now reading 2.16 cents per share. This is a figure that compared to analyst’s prediction for their 08/10/2021 (3.42 cents a share).

Is the stock of JAZZ attractive?

In related news, Chairman & CEO, COZADD BRUCE C sold 500 shares of the company’s stock in a transaction that recorded on May 05. The sale was performed at an average price of 170.00, for a total value of 85,000. As the sale deal closes, the Chairman & CEO, COZADD BRUCE C now sold 1,500 shares of the company’s stock, valued at 246,360. Also, Chairman & CEO, COZADD BRUCE C sold 1,500 shares of the company’s stock in a deal that was recorded on Apr 01. The shares were price at an average price of 164.96 per share, with a total market value of 247,440. Following this completion of acquisition, the VP, Finance & PAO, Carr Patricia now holds 961 shares of the company’s stock, valued at 155,202. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.90%.

14 out of 16 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Jazz Pharmaceuticals plc. 0 analysts has assigned a Sell rating on the JAZZ stock. The 12-month mean consensus price target for the company’s shares has been set at $204.35.