West Pharmaceutical Services Inc. (NYSE:WST) Relative Strength Index (RSI) is 62.64, with weekly volatility at 1.78% and ATR at 6.48. The WST stock’s 52-week price range has touched low of $197.72 and a $349.29 high. Intraday shares traded counted 0.36 million, which was 11.69% higher than its 30-day average trading volume of 402.80K. Its shares traded higher over the last trading session, gaining 2.34% on 06/10/21. The shares fell to a low of $336.85 before closing at $343.78. WST’s previous close was $335.93 while the outstanding shares total 73.90M. The firm has a beta of 1.00, a 12-month trailing P/E ratio of 61.65, and a growth ratio of 2.39.
Investors have identified the Medical Instruments & Supplies company West Pharmaceutical Services 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 $25.33 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.
West Pharmaceutical Services Inc. (WST) 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 1.33 billion total, with 482.8 million as their total liabilities.
WST were able to record 34.0 million as free cash flow during the 07/29/2021 quarter of the year, this saw their quarterly net cash flow reduce by -131.8 million. In cash movements, the company had a total of 88.7 million as operating cash flow.
Potential earnings growth for West Pharmaceutical Services Inc. (WST)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/29/2021 quarter of the year, West Pharmaceutical Services Inc. recorded a total of 670.7 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 26.72% coming in sequential stages and their sales for the 07/29/2021 quarter increasing by 13.49%.
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 398.8 million trying to sell their products during the last quarter, with the result yielding a gross income of 271.9 million. This allows shareholders to hold on to 73.90M with the recently reported earning now reading 2.05 cents per share. This is a figure that compared to analyst’s prediction for their 07/29/2021 (2.05 cents a share).
Having a look at the company’s valuation, the company is expected to record 7.75 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 WST sounds very interesting.
Is the stock of WST attractive?
In related news, Chief Digital & Trans Officer, Abraham Silji sold 2,171 shares of the company’s stock in a transaction that recorded on May 10. The sale was performed at an average price of 335.00, for a total value of 727,285. As the sale deal closes, the Sr. VP, GC & Corp. Sec., MILLER GEORGE LLOYD now sold 9,000 shares of the company’s stock, valued at 2,670,041. Also, SVP, Glob Ops and Supply Chain, MONTECALVO DAVID A sold 3,273 shares of the company’s stock in a deal that was recorded on Jul 29. The shares were price at an average price of 270.70 per share, with a total market value of 886,014. Following this completion of acquisition, the SVP, Glob Ops and Supply Chain, MONTECALVO DAVID A now holds 14,508 shares of the company’s stock, valued at 3,842,047. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
4 out of 7 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on West Pharmaceutical Services Inc.. 1 analysts has assigned a Sell rating on the WST stock. The 12-month mean consensus price target for the company’s shares has been set at $351.60.