ARC Document Solutions Inc. (NYSE:ARC) has a beta of 1.37, a 12-month trailing P/E ratio of 15.17, and a growth ratio of 1.52. The stock’s Relative Strength Index (RSI) is 52.66, with weekly volatility at 8.70% and ATR at 0.16. The ARC stock’s 52-week price range has touched low of $0.75 and a $2.69 high. Its shares traded higher over the last trading session, gaining 3.72% on 06/09/21. The shares fell to a low of $2.15 before closing at $2.23. Intraday shares traded counted 1.24 million, which was -481.69% lower than its 30-day average trading volume of 213.54K. ARC’s previous close was $2.15 while the outstanding shares total 42.26M.
Investors have identified the Specialty Business Services company ARC Document Solutions 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 $100.06 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.
ARC Document Solutions Inc. (ARC) 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 ARC, the company has in raw cash 49.46 million on their books with 16.6 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 103.27 million total, with 72.9 million as their total liabilities.
ARC were able to record 4.81 million as free cash flow during the 08/03/2021 quarter of the year, this saw their quarterly net cash flow reduce by -5.49 million. In cash movements, the company had a total of 5.38 million as operating cash flow.
Potential earnings growth for ARC Document Solutions Inc. (ARC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/03/2021 quarter of the year, ARC Document Solutions Inc. recorded a total of 61.73 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -43.24% coming in sequential stages and their sales for the 08/03/2021 quarter reducing by -4.23%.
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 42.94 million trying to sell their products during the last quarter, with the result yielding a gross income of 18.79 million. This allows shareholders to hold on to 42.26M with the recently reported earning now reading 0.01 cents per share. This is a figure that compared to analystâ€™s prediction for their 08/03/2021 (0.03 cents a share).
Is the stock of ARC attractive?
In related news, Chairman, President and CEO, Suriyakumar Kumarakulasingam sold 487,658 shares of the companyâ€™s stock in a transaction that recorded on Dec 08. The sale was performed at an average price of 1.21, for a total value of 589,188. As the sale deal closes, the Chairman, President and CEO, Suriyakumar Kumarakulasingam now sold 182,461 shares of the companyâ€™s stock, valued at 237,820. Also, Chairman, President and CEO, Suriyakumar Kumarakulasingam sold 15,378 shares of the companyâ€™s stock in a deal that was recorded on Dec 04. The shares were price at an average price of 1.38 per share, with a total market value of 21,222. Following this completion of acquisition, the Chairman, President and CEO, Suriyakumar Kumarakulasingam now holds 50,225 shares of the companyâ€™s stock, valued at 69,913. In the last 6 months, insiders have changed their ownership in shares of company stock by 7.10%.
1 out of 1 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on ARC Document Solutions Inc.. 0 analysts has assigned a Sell rating on the ARC stock. The 12-month mean consensus price target for the companyâ€™s shares has been set at $3.50.