Aspen Technology Inc. (NASDAQ:AZPN) has a beta of 1.24, a 12-month trailing P/E ratio of 28.62, and a growth ratio of 1.93. The stock’s Relative Strength Index (RSI) is 42.63, with weekly volatility at 2.74% and ATR at 4.82. The AZPN stock’s 52-week price range has touched low of $93.55 and a $162.56 high. Its shares traded lower over the last trading session, losing -2.38% on 05/28/21. The shares fell to a low of $136.24 before closing at $136.47. Intraday shares traded counted 0.55 million, which was 20.21% higher than its 30-day average trading volume of 686.56K. AZPN’s previous close was $139.80 while the outstanding shares total 67.92M.
Investors have identified the Software – Application company Aspen Technology Inc. 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 $9.51 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.
Aspen Technology Inc. (AZPN) 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 AZPN, the company has in raw cash 317.1 million on their books with 18.0 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 686.74 million total, with 126.65 million as their total liabilities.
AZPN were able to record 171.32 million as free cash flow during the 08/12/2021 quarter of the year, this saw their quarterly net cash flow reduce by 29.3 million. In cash movements, the company had a total of 172.95 million as operating cash flow.
Potential earnings growth for Aspen Technology Inc. (AZPN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/12/2021 quarter of the year, Aspen Technology Inc. recorded a total of 162.73 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 19.75% coming in sequential stages and their sales for the 08/12/2021 quarter reducing by -43.63%.
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 16.05 million trying to sell their products during the last quarter, with the result yielding a gross income of 146.67 million. This allows shareholders to hold on to 67.92M with the recently reported earning now reading 0.92 cents per share. This is a figure that compared to analyst’s prediction for their 08/12/2021 (0.94 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.40 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 AZPN sounds very interesting.
Is the stock of AZPN attractive?
In related news, Director, CASEY DONALD P sold 9,592 shares of the company’s stock in a transaction that recorded on May 26. The sale was performed at an average price of 142.95, for a total value of 1,371,176. As the sale deal closes, the Director, Whelan, Jr. Robert M. now sold 8,966 shares of the company’s stock, valued at 1,254,009. Also, EVP, Operations, Hague John sold 550 shares of the company’s stock in a deal that was recorded on Apr 15. The shares were price at an average price of 151.36 per share, with a total market value of 83,248. Following this completion of acquisition, the EVP, Operations, Hague John now holds 552 shares of the company’s stock, valued at 84,539. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.60%.
4 out of 9 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Aspen Technology Inc.. 1 analysts has assigned a Sell rating on the AZPN stock. The 12-month mean consensus price target for the company’s shares has been set at $149.71.