Charles & Colvard Ltd. (NASDAQ:CTHR) Relative Strength Index (RSI) is 40.67, with weekly volatility at 5.46% and ATR at 0.19. The CTHR stock’s 52-week price range has touched low of $0.63 and a $3.66 high. Intraday shares traded counted 0.46 million, which was 14.14% higher than its 30-day average trading volume of 534.61K. Its shares traded lower over the last trading session, losing -4.15% on 05/27/21. The shares fell to a low of $2.46 before closing at $2.54. CTHR’s previous close was $2.65 while the outstanding shares total 29.32M. The firm has a beta of 0.20, a 12-month trailing P/E ratio of 22.09, and a growth ratio of 0.74.
Investors have identified the Luxury Goods company Charles & Colvard Ltd. 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 $72.57 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.
Charles & Colvard Ltd. (CTHR) 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 CTHR, the company has in raw cash 19.68 million on their books with 0.64 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 35.79 million total, with 6.13 million as their total liabilities.
CTHR were able to record 4.32 million as free cash flow during the 09/09/2021 quarter of the year, this saw their quarterly net cash flow reduce by 5.06 million. In cash movements, the company had a total of 4.67 million as operating cash flow.
Potential earnings growth for Charles & Colvard Ltd. (CTHR)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/09/2021 quarter of the year, Charles & Colvard Ltd. recorded a total of 9.44 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 31.21% coming in sequential stages and their sales for the 09/09/2021 quarter reducing by -28.73%.
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 5.09 million trying to sell their products during the last quarter, with the result yielding a gross income of 4.34 million. This allows shareholders to hold on to 29.32M with the recently reported earning now reading 0.04 cents per share. This is a figure that compared to analyst’s prediction for their 09/09/2021 (0.03 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.19 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 CTHR sounds very interesting.
Is the stock of CTHR attractive?
In related news, Director, SYKES OLLIN B bought 63,500 shares of the company’s stock in a transaction that recorded on Mar 16. The purchase was performed at an average price of 2.79, for a total value of 177,250. As the purchase deal closes, the Director, SYKES OLLIN B now bought 50,035 shares of the company’s stock, valued at 107,078. Also, Director, SYKES OLLIN B bought 19,550 shares of the company’s stock in a deal that was recorded on Mar 04. The shares were cost at an average price of 2.25 per share, with a total market value of 43,988. Following this completion of disposal, the Director, SYKES OLLIN B now holds 30,448 shares of the company’s stock, valued at 67,277. In the last 6 months, insiders have changed their ownership in shares of company stock by 7.00%.
1 out of 1 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Charles & Colvard Ltd.. 0 analysts has assigned a Sell rating on the CTHR stock. The 12-month mean consensus price target for the company’s shares has been set at $3.50.