Goldman slashes price target on Covetrus Inc. [CVET] – find out why.

Covetrus Inc. [NASDAQ: CVET] loss -2.71% on the last trading session, reaching $22.46 price per share at the time. The company report on August 11, 2020 that Covetrus Announces Financial Results for Second Quarter of 2020.

Covetrus (Nasdaq: CVET), a global leader in animal-health technology and services, today announced financial results for the second quarter of 2020, which ended June 30, 2020.

“I am extremely proud of our team’s exceptional efforts and accomplishments during the second quarter to support our customers around the globe during COVID-19. Our strong second quarter financial results demonstrate our progress, and our 2020 guidance showcases the confidence we have in our business,” said Ben Wolin, Covetrus president and chief executive officer. “While uncertainties tied to the global pandemic and the pace and recovery of our end-market remain, continued investments in our organizational health, innovation and customer success puts us in a strong position to capitalize on our strategic opportunities and to deliver shareholder value in the quarters and years ahead.”.

Covetrus Inc. represents 112.00 million in outstanding shares, while the company has a total market value of $2.54 billion with the latest information. CVET stock price has been found in the range of $21.91 to $25.00.

If compared to the average trading volume of 1.37M shares, CVET reached a trading volume of 3055238 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Covetrus Inc. [CVET]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CVET shares is $14.63 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CVET stock is a recommendation set at 2.60. 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.

Goldman have made an estimate for Covetrus Inc. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on September 09, 2019. The new note on the price target was released on May 23, 2019, representing the official price target for Covetrus Inc. stock. Previously, the target price had yet another raise to $35, while Credit Suisse analysts kept a Neutral rating on CVET stock.

The Average True Range (ATR) for Covetrus Inc. is set at 1.19, with the Price to Sales ratio for CVET stock in the period of the last 12 months amounting to 0.62. The Price to Book ratio for the last quarter was 2.09, with the Price to Cash per share for the same quarter was set at 1.81.

Trading performance analysis for CVET stock

Covetrus Inc. [CVET] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.52. With this latest performance, CVET shares gained by 11.30% in over the last four-week period, additionally plugging by 66.56% over the last 6 months – not to mention a rise of 61.70% 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 CVET stock in for the last two-week period is set at 60.65, with the RSI for the last a single of trading hit 56.55, and the three-weeks RSI is set at 61.94 for Covetrus Inc. [CVET]. The present Moving Average for the last 50 days of trading for this stock 19.66, while it was recorded at 23.07 for the last single week of trading, and 13.68 for the last 200 days.

Covetrus Inc. [CVET]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Covetrus Inc. [CVET] shares currently have an operating margin of -1.48 and a Gross Margin at +15.12. Covetrus Inc.’s Net Margin is presently recorded at -25.63.

Return on Total Capital for CVET is now -2.84, given the latest momentum, and Return on Invested Capital for the company is -51.40. Return on Equity for this stock declined to -74.12, with Return on Assets sitting at -36.43. When it comes to the capital structure of this company, Covetrus Inc. [CVET] has a Total Debt to Total Equity ratio set at 101.35. Additionally, CVET Total Debt to Total Capital is recorded at 50.34, with Total Debt to Total Assets ending up at 37.88. Long-Term Debt to Equity for the company is recorded at 94.90, with the Long-Term Debt to Total Capital now at 47.13.

Reflecting on the efficiency of the workforce at the company, Covetrus Inc. [CVET] managed to generate an average of -$185,273 per employee. Receivables Turnover for the company is 8.17 with a Total Asset Turnover recorded at a value of 1.42.Covetrus Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.80.

Covetrus Inc. [CVET]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Covetrus Inc. posted 0.17/share EPS, while the average EPS was predicted by analysts to be reported at 0.07/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 142.90%. 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 CVET.

An analysis of insider ownership at Covetrus Inc. [CVET]

There are presently around $2,484 million, in the hands of institutional investors. The top three institutional holders of CVET stocks are: MORGAN STANLEY with ownership of 12,133,420, which is approximately -1.941% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 11,938,991 shares of the stock with an approximate value of $268.15 million in CVET stocks shares; and CLAYTON, DUBILIER & RICE, LLC, currently with $248.69 million in CVET stock with ownership of nearly 0.057% of the company’s market capitalization.

107 institutional holders increased their position in Covetrus Inc. [NASDAQ:CVET] by around 17,474,621 shares. Additionally, 136 investors decreased positions by around 11,590,342 shares, while 58 investors held positions by with 81,535,635 shares. The mentioned changes placed institutional holdings at 110,600,598 shares, according to the latest SEC report filing. CVET stock had 36 new institutional investments in for a total of 3,967,744 shares, while 52 institutional investors sold positions of 4,734,335 shares during the same period.

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