Morgan Stanley slashes price target on Guardant Health Inc. [GH] – find out why.

Guardant Health Inc. [NASDAQ: GH] traded at a low on 10/07/20, posting a -2.73 loss after which it closed the day’ session at $106.89. The company report on October 7, 2020 that Guardant Health Announces Pricing of Public Offering of Common Stock by Selling Stockholder.

Guardant Health, Inc. (Nasdaq: GH) (“Guardant Health”), a leading precision oncology company focused on helping conquer cancer globally through use of its proprietary blood tests, vast data sets and advanced analytics, announced today the pricing of an underwritten public offering of 7,000,000 shares of its common stock at a public offering price of $102.00 per share, before deducting underwriting discounts and commissions, all of which are being sold by SoftBank Investment Advisers. In addition, SoftBank Investment Advisers has granted the underwriter a 30-day option to purchase up to 700,000 additional shares of common stock at the public offering price, less underwriting discounts and commissions. Guardant Health is not selling any of its shares in the offering and will not receive any of the proceeds from the sale of shares in the offering by SoftBank Investment Advisers. The offering is expected to close on October 9, 2020, subject to the satisfaction of customary closing conditions.

J.P. Morgan Securities LLC is acting as sole book-running manager of the offering.

The results of the trading session contributed to over 5323665 shares changing hands. Over the past one week, the price volatility of Guardant Health Inc. stands at 4.37% while the volatility over the past one month is 4.38%.

The market cap for GH stock reached $10.65 billion, with 96.01 million shares outstanding and 91.64 million shares in the current float. Compared to the average trading volume of 783.80K shares, GH reached a trading volume of 5323665 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Guardant Health Inc. [GH]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GH shares is $110.13 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GH stock is a recommendation set at 1.30. 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.

Morgan Stanley have made an estimate for Guardant Health Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on September 09, 2020. The new note on the price target was released on June 12, 2020, representing the official price target for Guardant Health Inc. stock. Previously, the target price had yet another raise to $103, while Guggenheim analysts kept a Buy rating on GH stock.

The Average True Range (ATR) for Guardant Health Inc. is set at 4.63, with the Price to Sales ratio for GH stock in the period of the last 12 months amounting to 41.35. The Price to Book ratio for the last quarter was 9.21, with the Price to Cash per share for the same quarter was set at 9.41.

How has GH stock performed recently?

Guardant Health Inc. [GH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.37. With this latest performance, GH shares gained by 17.50% in over the last four-week period, additionally plugging by 65.64% over the last 6 months – not to mention a rise of 78.51% 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 GH stock in for the last two-week period is set at 56.79, with the RSI for the last a single of trading hit 51.33, and the three-weeks RSI is set at 58.26 for Guardant Health Inc. [GH]. The present Moving Average for the last 50 days of trading for this stock 96.25, while it was recorded at 108.85 for the last single week of trading, and 83.57 for the last 200 days.

Guardant Health Inc. [GH]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Guardant Health Inc. [GH] shares currently have an operating margin of -38.23 and a Gross Margin at +67.01. Guardant Health Inc.’s Net Margin is presently recorded at -35.29.

Return on Total Capital for GH is now -11.48, given the latest momentum, and Return on Invested Capital for the company is -11.38. Return on Equity for this stock declined to -11.81, with Return on Assets sitting at -9.76. When it comes to the capital structure of this company, Guardant Health Inc. [GH] has a Total Debt to Total Equity ratio set at 5.92. Additionally, GH Total Debt to Total Capital is recorded at 5.59, with Total Debt to Total Assets ending up at 4.91. Long-Term Debt to Equity for the company is recorded at 5.03, with the Long-Term Debt to Total Capital now at 4.75.

Reflecting on the efficiency of the workforce at the company, Guardant Health Inc. [GH] managed to generate an average of -$121,625 per employee. Receivables Turnover for the company is 5.12 with a Total Asset Turnover recorded at a value of 0.28.Guardant Health Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 14.10 and a Current Ratio set at 14.40.

Earnings analysis for Guardant Health Inc. [GH]

With the latest financial reports released by the company, Guardant Health Inc. posted -0.14/share EPS, while the average EPS was predicted by analysts to be reported at -0.37/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 62.20%. 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 GH. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Guardant Health Inc. go to 29.30%.

Insider trade positions for Guardant Health Inc. [GH]

There are presently around $9,279 million, or 84.80% of GH stock, in the hands of institutional investors. The top three institutional holders of GH stocks are: SB INVESTMENT ADVISERS (UK) LTD with ownership of 14,037,960, which is approximately -38.834% of the company’s market cap and around 5.60% of the total institutional ownership; VANGUARD GROUP INC, holding 6,319,265 shares of the stock with an approximate value of $675.47 million in GH stocks shares; and MORGAN STANLEY, currently with $638.63 million in GH stock with ownership of nearly 19.209% of the company’s market capitalization.

Positions in Guardant Health Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 215 institutional holders increased their position in Guardant Health Inc. [NASDAQ:GH] by around 17,305,316 shares. Additionally, 94 investors decreased positions by around 14,603,694 shares, while 47 investors held positions by with 54,898,789 shares. The mentioned changes placed institutional holdings at 86,807,799 shares, according to the latest SEC report filing. GH stock had 72 new institutional investments in for a total of 2,879,894 shares, while 30 institutional investors sold positions of 324,461 shares during the same period.

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