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At Citi Trends Inc. (NASDAQ:CTRN), Share Price Got a Bit Ahead of the Fundamentals

Citi Trends Inc. (NASDAQ:CTRN) shares traded lower over the last trading session, losing -2.47% on 06/17/21. The shares fell to a low of $77.5301 before closing at $80.00. Intraday shares traded counted 0.44 million, which was -75.71% lower than its 30-day average trading volume of 250.45K. CTRN’s previous close was $82.03 while the outstanding shares total 9.45M. The firm has a beta of 1.80, a 12-month trailing P/E ratio of 10.51, and a growth ratio of 0.44. The stock’s Relative Strength Index (RSI) is 37.74, with weekly volatility at 6.13% and ATR at 4.87. The CTRN stock’s 52-week price range has touched low of $15.28 and a $111.44 high.

Investors have identified the Apparel Retail company Citi Trends 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 $716.80 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.

Citi Trends Inc. (CTRN) 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 252.37 million total, with 210.35 million as their total liabilities.

CTRN were able to record 55.8 million as free cash flow during the 08/26/2021 quarter of the year, this saw their quarterly net cash flow reduce by 8.1 million. In cash movements, the company had a total of 61.74 million as operating cash flow.

Potential earnings growth for Citi Trends Inc. (CTRN)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/26/2021 quarter of the year, Citi Trends Inc. recorded a total of 285.38 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 59.31% coming in sequential stages and their sales for the 08/26/2021 quarter increasing by 11.73%.

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 163.79 million trying to sell their products during the last quarter, with the result yielding a gross income of 121.59 million. This allows shareholders to hold on to 9.45M with the recently reported earning now reading 3.27 cents per share. This is a figure that compared to analyst’s prediction for their 08/26/2021 (3.23 cents a share).

Having a look at the company’s valuation, the company is expected to record 5.74 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 CTRN sounds very interesting.

Is the stock of CTRN attractive?

In related news, SR VP of HR, Chief Compl Offcr, Council Ivy D sold 1,762 shares of the company’s stock in a transaction that recorded on Jun 14. The sale was performed at an average price of 85.25, for a total value of 150,210. As the sale deal closes, the Chief Merchandising Officer, Powell Lisa A. now sold 4,501 shares of the company’s stock, valued at 382,585. Also, SR VP of Store Operations, Dunn James A sold 15,000 shares of the company’s stock in a deal that was recorded on Apr 07. The shares were price at an average price of 87.63 per share, with a total market value of 1,314,450. Following this completion of acquisition, the Senior VP Supply Chain, Hynes Charles J. now holds 816 shares of the company’s stock, valued at 68,740. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.70%.

2 out of 2 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Citi Trends Inc.. 0 analysts has assigned a Sell rating on the CTRN stock. The 12-month mean consensus price target for the company’s shares has been set at $135.00.

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