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Levi Strauss & Co. (NYSE:LEVI): The Fundamentals Have Changed

Levi Strauss & Co. (NYSE:LEVI) previous close was $26.23 while the outstanding shares total 399.54M. LEVI’s shares traded lower over the last trading session, losing -6.29% on 06/18/21. The shares fell to a low of $24.42 before closing at $24.58. Intraday shares traded counted 3.72 million, which was -125.66% lower than its 30-day average trading volume of 1.65M. The stock’s Relative Strength Index (RSI) is 32.74, with weekly volatility at 3.90% and ATR at 1.00. The LEVI stock’s 52-week price range has touched low of $11.82 and a $30.84 high.

Investors have identified the Apparel Manufacturing company Levi Strauss & Co. 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 $10.50 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.

Levi Strauss & Co. (LEVI) 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 LEVI, the company has in raw cash 1.97 billion on their books with 789.28 million currently as liabilities. How the trend is over time is what investors should be concerned about. In terms of their assets, the company currently has 3.7 billion total, with 2.32 billion as their total liabilities.

LEVI were able to record 32.49 million as free cash flow during the 10/12/2021 quarter of the year, this saw their quarterly net cash flow reduce by 476.45 million. In cash movements, the company had a total of 69.48 million as operating cash flow.

Potential earnings growth for Levi Strauss & Co. (LEVI)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 10/12/2021 quarter of the year, Levi Strauss & Co. recorded a total of 1.31 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -15.36% coming in sequential stages and their sales for the 10/12/2021 quarter reducing by -6.15%.

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 545.57 million trying to sell their products during the last quarter, with the result yielding a gross income of 760.03 million. This allows shareholders to hold on to 399.54M with the recently reported earning now reading 0.36 cents per share. This is a figure that compared to analyst’s prediction for their 10/12/2021 (0.34 cents a share).

Having a look at the company’s valuation, the company is expected to record 1.32 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 LEVI sounds very interesting.

Is the stock of LEVI attractive?

In related news, Director, Friedman David A sold 25,000 shares of the company’s stock in a transaction that recorded on Jun 15. The sale was performed at an average price of 26.56, for a total value of 664,000. As the sale deal closes, the 10% Owner, Haas Robert D. now sold 46,136 shares of the company’s stock, valued at 1,260,851. Also, 10% Owner, Haas Bradley J. sold 36,547 shares of the company’s stock in a deal that was recorded on Jun 01. The shares were price at an average price of 27.33 per share, with a total market value of 998,793. Following this completion of acquisition, the 10% Owner, Haas Bradley J. now holds 57,169 shares of the company’s stock, valued at 1,516,185. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.30%.

9 out of 9 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Levi Strauss & Co.. 0 analysts has assigned a Sell rating on the LEVI stock. The 12-month mean consensus price target for the company’s shares has been set at $31.00.

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