Ralph Lauren Corporation (NYSE:RL) shares traded lower over the last trading session, losing -1.24% on 05/28/21. The shares fell to a low of $123.39 before closing at $124.08. Intraday shares traded counted 0.66 million, which was 38.86% higher than its 30-day average trading volume of 1.08M. RL’s previous close was $125.64 while the outstanding shares total 73.80M. The firm has a beta of 1.53. The stock’s Relative Strength Index (RSI) is 44.70, with weekly volatility at 2.37% and ATR at 4.34. The RL stock’s 52-week price range has touched low of $63.90 and a $142.06 high.
Investors have identified the Apparel Manufacturing company Ralph Lauren 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 $9.19 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.
Ralph Lauren Corporation (RL) 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. In terms of their assets, the company currently has 4.21 billion total, with 1.58 billion as their total liabilities.
RL were able to record 273.1 million as free cash flow during the 08/11/2021 quarter of the year, this saw their quarterly net cash flow reduce by 958.2 million. In cash movements, the company had a total of 380.9 million as operating cash flow.
Potential earnings growth for Ralph Lauren Corporation (RL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/11/2021 quarter of the year, Ralph Lauren Corporation recorded a total of 1.29 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 1.0% coming in sequential stages and their sales for the 08/11/2021 quarter reducing by -11.33%.
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 504.1 million trying to sell their products during the last quarter, with the result yielding a gross income of 782.9 million. This allows shareholders to hold on to 73.80M with the recently reported earning now reading -1.00 cents per share. This is a figure that compared to analyst’s prediction for their 08/11/2021 (0.38 cents a share).
Having a look at the company’s valuation, the company is expected to record 7.05 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 RL sounds very interesting.
Is the stock of RL attractive?
In related news, EVP, Chief Commercial Officer, Smith Andrew Howard sold 6,212 shares of the company’s stock in a transaction that recorded on May 27. The sale was performed at an average price of 125.00, for a total value of 776,500. As the sale deal closes, the CFO and COO, Nielsen Jane now sold 14,389 shares of the company’s stock, valued at 1,856,181. Also, CFO and COO, Nielsen Jane sold 10,627 shares of the company’s stock in a deal that was recorded on Apr 12. The shares were price at an average price of 127.69 per share, with a total market value of 1,356,994. Following this completion of acquisition, the EVP, Chief Commercial Officer, Smith Andrew Howard now holds 3,164 shares of the company’s stock, valued at 395,500. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.70%.
9 out of 21 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Ralph Lauren Corporation. 0 analysts has assigned a Sell rating on the RL stock. The 12-month mean consensus price target for the company’s shares has been set at $135.84.