Market Analysts see Party City Holdco Inc. [PRTY] falling to $1. Time to buy?

Party City Holdco Inc. [NYSE: PRTY] traded at a low on 07/27/20, posting a -3.92 loss after which it closed the day’ session at $1.47. The company report on July 27, 2020 that Party City Announces Expiration and Final Results of Previously Announced Exchange Offers, Consent Solicitations and Rights Offering.

Party City Holdco Inc. (together with its subsidiaries, the “Company”) today announced that:.

The Company’s announcement relates to its previously announced (i) offers to exchange (the “Exchange Offers”) any and all of the outstanding (x) $350,000,000 aggregate principal amount of existing unsecured 6.125% Senior Notes due 2023 (the “2023 Notes”) and (y) $500,000,000 aggregate principal amount of existing unsecured 6.625% Senior Notes due 2026 (the “2026 Notes” and, together with the 2023 Notes, the “Existing Notes”) issued by its wholly-owned subsidiary Party City Holdings, Inc. (“Holdings”) for: (A) shares of common stock of the Company, par value $0.01 per share (the “Common Stock”); (B) 5.00% Cash/PIK / 5.00% PIK Senior Secured Second Lien Notes due 2026 (the “Second Lien Anagram Notes”) to be co-issued by Anagram Holdings, LLC, a wholly owned subsidiary of Holdings (“Anagram LLC”), and Anagram International, Inc., a Minnesota corporation and direct subsidiary of Holdings, which shall become a wholly owned subsidiary of Anagram LLC upon the consummation of the Exchange Offers (together with Anagram LLC, the “Anagram Issuers”); (C) Floating Rate Senior Secured First Lien Notes due 2025 (the “First Lien Party City Notes”) to be issued by Holdings; and (D) Subscription Rights (as defined below); (ii) consent solicitations (the “Consent Solicitations”), whereby the Company solicited consents (the “Consents”) from eligible holders to certain proposed amendments (the “Proposed Amendments”) to the indentures governing the Existing Notes (the “Existing Notes Indentures”); and (iii) rights offering (the “Rights Offering”), pursuant to which certain eligible holders of Existing Notes had the right (the “Subscription Right”), but not the obligation, to subscribe for $48.82 aggregate principal amount of 10.00% Cash / 5.00% PIK Senior Secured First Lien Notes due 2025 (the “First Lien Anagram Notes”) to be issued by the Anagram Issuers, for each $1,000 principal amount of Existing Notes such eligible holders validly tendered in the Exchange Offers. Each of the Exchange Offers, the Consent Solicitations and the Rights Offering was conducted upon the terms and subject to the conditions set forth in a confidential offering memorandum, dated as of June 26, 2020, as amended, supplemented, modified and updated by Supplement No. 1, dated July 2, 2020, and Supplement No. 2, dated July 9, 2020 (as so amended, supplemented, modified and updated, the “Offering Memorandum”).

The results of the trading session contributed to over 1797847 shares changing hands. Over the past one week, the price volatility of Party City Holdco Inc. stands at 10.66% while the volatility over the past one month is 10.46%.

The market cap for PRTY stock reached $140.75 million, with 93.40 million shares outstanding and 84.26 million shares in the current float. Compared to the average trading volume of 10.73M shares, PRTY reached a trading volume of 1797847 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Party City Holdco Inc. [PRTY]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PRTY shares is $2.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PRTY stock is a recommendation set at 2.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Telsey Advisory Group have made an estimate for Party City Holdco Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on March 13, 2020. While these analysts kept the previous recommendation, Stephens dropped their target price from $8 to $2. The new note on the price target was released on March 13, 2020, representing the official price target for Party City Holdco Inc. stock. Previously, the target price had yet another drop from $9 to $2.50, while Telsey Advisory Group kept a Market Perform rating on PRTY stock.

The Average True Range (ATR) for Party City Holdco Inc. is set at 0.15, with the Price to Sales ratio for PRTY stock in the period of the last 12 months amounting to 0.06. Price to Free Cash Flow for PRTY in the course of the last twelve months was 13.41 with Quick ratio for the last quarter at 0.40.

How has PRTY stock performed recently?

Party City Holdco Inc. [PRTY] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.21. With this latest performance, PRTY shares gained by 6.52% in over the last four-week period, additionally sinking by -49.48% over the last 6 months – not to mention a drop of -76.78% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PRTY stock in for the last two-week period is set at 54.91, with the RSI for the last a single of trading hit 55.71, and the three-weeks RSI is set at 53.40 for Party City Holdco Inc. [PRTY]. The present Moving Average for the last 50 days of trading for this stock 1.3613, while it was recorded at 1.4580 for the last single week of trading, and 2.0469 for the last 200 days.

Party City Holdco Inc. [PRTY]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Party City Holdco Inc. [PRTY] shares currently have an operating margin of +4.93 and a Gross Margin at +35.55. Party City Holdco Inc.’s Net Margin is presently recorded at -22.67.

Return on Total Capital for PRTY is now 3.80, given the latest momentum, and Return on Invested Capital for the company is -19.63. Return on Equity for this stock declined to -67.41, with Return on Assets sitting at -14.71. When it comes to the capital structure of this company, Party City Holdco Inc. [PRTY] has a Total Debt to Total Equity ratio set at 484.06. Additionally, PRTY Total Debt to Total Capital is recorded at 82.88, with Total Debt to Total Assets ending up at 71.77. Long-Term Debt to Equity for the company is recorded at 419.96, with the Long-Term Debt to Total Capital now at 71.45.

Reflecting on the efficiency of the workforce at the company, Party City Holdco Inc. [PRTY] managed to generate an average of -$29,098 per employee. Receivables Turnover for the company is 15.87 with a Total Asset Turnover recorded at a value of 0.65.Party City Holdco Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 1.10.

Earnings analysis for Party City Holdco Inc. [PRTY]

With the latest financial reports released by the company, Party City Holdco Inc. posted 0.22/share EPS, while the average EPS was predicted by analysts to be reported at 0.36/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -38.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PRTY. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Party City Holdco Inc. go to -14.16%.

Insider trade positions for Party City Holdco Inc. [PRTY]

There are presently around $101 million, or 75.90% of PRTY stock, in the hands of institutional investors. The top three institutional holders of PRTY stocks are: CAS INVESTMENT PARTNERS, LLC with ownership of 10,666,736, which is approximately 34.14% of the company’s market cap and around 5.40% of the total institutional ownership; MORGAN STANLEY, holding 10,078,923 shares of the stock with an approximate value of $14.82 million in PRTY stocks shares; and NANTAHALA CAPITAL MANAGEMENT, LLC, currently with $10.49 million in PRTY stock with ownership of nearly -6.948% of the company’s market capitalization.

Positions in Party City Holdco Inc. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 45 institutional holders increased their position in Party City Holdco Inc. [NYSE:PRTY] by around 17,918,317 shares. Additionally, 65 investors decreased positions by around 19,576,386 shares, while 21 investors held positions by with 31,139,315 shares. The mentioned changes placed institutional holdings at 68,634,018 shares, according to the latest SEC report filing. PRTY stock had 12 new institutional investments in for a total of 1,400,619 shares, while 39 institutional investors sold positions of 13,064,831 shares during the same period.

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