NewAge Inc. [NBEV] moved down -0.90: Why It’s Important

NewAge Inc. [NASDAQ: NBEV] traded at a low on 10/14/20, posting a -0.90 loss after which it closed the day’ session at $2.20. The company report on October 9, 2020 that NewAge Expands Operations To Brazil.

NewAge, Inc. (Nasdaq: NBEV), the Colorado-based omni-channel social selling and distribution company, with a network of independent business owners across 75 countries worldwide when combined with ARIIX, today announced that it has expanded operations to Brazil, one of the six largest direct selling markets in the world.

NewAge and ARIIX announced their plans to merge on July 20, 2020, which will create a combined company with pro forma revenues of more than $500 million with operations worldwide and access to both developed and developing markets in key areas of the world. Since the announcement, the company has been working on identifying and capturing synergies as part of the transaction and completing the audit of ARIIX’s financial statements to enable closing of the transaction. In addition to cost synergies of more than $20 million, NewAge also identified revenue synergies from cross-sales of brands and providing access for respective leaders to each other’s markets. The Brazil expansion is a realization of one of those revenue synergies.

The results of the trading session contributed to over 1585885 shares changing hands. Over the past one week, the price volatility of NewAge Inc. stands at 8.43% while the volatility over the past one month is 6.95%.

The market cap for NBEV stock reached $190.94 million, with 98.41 million shares outstanding and 94.01 million shares in the current float. Compared to the average trading volume of 2.92M shares, NBEV reached a trading volume of 1585885 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about NewAge Inc. [NBEV]?

Alliance Global Partners have made an estimate for NewAge Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 15, 2019. The new note on the price target was released on July 22, 2019, representing the official price target for NewAge Inc. stock. Previously, the target price had yet another raise to $8, while Alliance Global Partners analysts kept a Buy rating on NBEV stock.

The Average True Range (ATR) for NewAge Inc. is set at 0.14, with the Price to Sales ratio for NBEV stock in the period of the last 12 months amounting to 0.75. The Price to Book ratio for the last quarter was 2.10, with the Price to Cash per share for the same quarter was set at 0.47.

How has NBEV stock performed recently?

NewAge Inc. [NBEV] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 16.40. With this latest performance, NBEV shares gained by 22.91% in over the last four-week period, additionally plugging by 47.65% over the last 6 months – not to mention a drop of -19.71% 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 NBEV stock in for the last two-week period is set at 69.22, with the RSI for the last a single of trading hit 77.69, and the three-weeks RSI is set at 63.39 for NewAge Inc. [NBEV]. The present Moving Average for the last 50 days of trading for this stock 1.98, while it was recorded at 2.13 for the last single week of trading, and 1.76 for the last 200 days.

NewAge Inc. [NBEV]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and NewAge Inc. [NBEV] shares currently have an operating margin of -18.37 and a Gross Margin at +56.89. NewAge Inc.’s Net Margin is presently recorded at -35.41.

Return on Total Capital for NBEV is now -26.51, given the latest momentum, and Return on Invested Capital for the company is -55.00. Return on Equity for this stock declined to -72.80, with Return on Assets sitting at -33.39. When it comes to the capital structure of this company, NewAge Inc. [NBEV] has a Total Debt to Total Equity ratio set at 88.58. Additionally, NBEV Total Debt to Total Capital is recorded at 46.97, with Total Debt to Total Assets ending up at 32.55. Long-Term Debt to Equity for the company is recorded at 70.29, with the Long-Term Debt to Total Capital now at 37.27.

Reflecting on the efficiency of the workforce at the company, NewAge Inc. [NBEV] managed to generate an average of -$96,183 per employee. Receivables Turnover for the company is 24.20 with a Total Asset Turnover recorded at a value of 0.94.NewAge Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.60.

Earnings analysis for NewAge Inc. [NBEV]

With the latest financial reports released by the company, NewAge Inc. posted -0.14/share EPS, while the average EPS was predicted by analysts to be reported at -0.04/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -250.00%. 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 NBEV.

Insider trade positions for NewAge Inc. [NBEV]

There are presently around $48 million, or 23.00% of NBEV stock, in the hands of institutional investors. The top three institutional holders of NBEV stocks are: BLACKROCK INC. with ownership of 6,071,880, which is approximately 13.898% of the company’s market cap and around 1.00% of the total institutional ownership; VANGUARD GROUP INC, holding 5,410,768 shares of the stock with an approximate value of $11.9 million in NBEV stocks shares; and GEODE CAPITAL MANAGEMENT, LLC, currently with $2.65 million in NBEV stock with ownership of nearly 5.969% of the company’s market capitalization.

Positions in NewAge Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 46 institutional holders increased their position in NewAge Inc. [NASDAQ:NBEV] by around 3,949,508 shares. Additionally, 33 investors decreased positions by around 1,729,732 shares, while 19 investors held positions by with 16,150,011 shares. The mentioned changes placed institutional holdings at 21,829,251 shares, according to the latest SEC report filing. NBEV stock had 15 new institutional investments in for a total of 1,072,255 shares, while 12 institutional investors sold positions of 379,596 shares during the same period.

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