Zuora Inc. (NYSE:ZUO) shares fell to a low of $15.18 before closing at $15.47. Intraday shares traded counted 0.82 million, which was 30.13% higher than its 30-day average trading volume of 1.18M. ZUO’s previous close was $15.06 while the outstanding shares total 119.92M. The stock’s Relative Strength Index (RSI) is 52.78, with weekly volatility at 3.80% and ATR at 0.66. The ZUO stock’s 52-week price range has touched low of $9.15 and a $17.95 high. The stock traded higher over the last trading session, gaining 2.72% on 05/28/21.
Investors have identified the Software – Infrastructure company Zuora 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 $1.84 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.
Zuora Inc. (ZUO) 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 ZUO, the company has in raw cash 94.11 million on their books with 4.4 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 a decline. In terms of their assets, the company currently has 293.74 million total, with 188.0 million as their total liabilities.
ZUO were able to record -1.86 million as free cash flow during the 09/02/2021 quarter of the year, this saw their quarterly net cash flow reduce by 39.84 million. In cash movements, the company had a total of 11.29 million as operating cash flow.
Potential earnings growth for Zuora Inc. (ZUO)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/02/2021 quarter of the year, Zuora Inc. recorded a total of 79.29 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 11.22% coming in sequential stages and their sales for the 09/02/2021 quarter increasing by 2.57%.
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 32.13 million trying to sell their products during the last quarter, with the result yielding a gross income of 47.16 million. This allows shareholders to hold on to 119.92M with the recently reported earning now reading -0.16 cents per share. This is a figure that compared to analyst’s prediction for their 09/02/2021 (-0.13 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.48 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 ZUO sounds very interesting.
Is the stock of ZUO attractive?
In related news, Chairman and CEO, Tzuo Tien sold 20,000 shares of the company’s stock in a transaction that recorded on Apr 14. The sale was performed at an average price of 17.76, for a total value of 355,222. As the sale deal closes, the SVP, GC and Corp. Secretary, Pileggi Jennifer now sold 10,000 shares of the company’s stock, valued at 171,683. Also, Chief Revenue Officer, Traube Robert J. sold 8,120 shares of the company’s stock in a deal that was recorded on Apr 12. The shares were price at an average price of 16.23 per share, with a total market value of 131,768. Following this completion of acquisition, the SVP, GC and Corp. Secretary, Pileggi Jennifer now holds 4,546 shares of the company’s stock, valued at 73,734. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
2 out of 6 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Zuora Inc.. 2 analysts has assigned a Sell rating on the ZUO stock. The 12-month mean consensus price target for the company’s shares has been set at $16.17.