SmileDirectClub Inc. [NASDAQ: SDC] slipped around -2.02 points on Tuesday, while shares priced at $8.61 at the close of the session, down -19.00%. The company report on May 5, 2021 that INVESTIGATION ALERT: The Schall Law Firm Announces it is Investigating Claims Against SmileDirectClub, Inc. and Encourages Investors with Losses to Contact the Firm.
The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of SmileDirectClub, Inc. (“SmileDirectClub” or “the Company”) (NASDAQ: SDC) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. SmileDirectClub stated in a regulatory filing that it suffered from a systems outage caused by a “cybersecurity incident” on April 14, 2021. According to the Company, it was able “to successfully block the attack, no ransom was paid, and the Company’s systems and operations are back online and performing normally.” Despite this, the Company admitted that the cyberattack “may have a material impact on its business operations and financial results in the second quarter.” Based on this news, shares of SmileDirectClub plunged by 19%.
SmileDirectClub Inc. stock is now -27.89% down from its year-to-date (YTD) trading value. SDC Stock saw the intraday high of $9.35 and lowest of $8.42 per share. The company’s 52-week high price is 16.08, which means current price is +2.26% above from all time high which was touched on 01/28/21.
Compared to the average trading volume of 5.14M shares, SDC reached a trading volume of 21831687 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about SmileDirectClub Inc. [SDC]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SDC shares is $12.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SDC stock is a recommendation set at 2.10. 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.
Wolfe Research have made an estimate for SmileDirectClub Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on December 08, 2020. While these analysts kept the previous recommendation, Stifel raised their target price from $11 to $14. The new note on the price target was released on September 17, 2020, representing the official price target for SmileDirectClub Inc. stock. On July 13, 2020, analysts increased their price target for SDC shares from 9 to 11.
The Average True Range (ATR) for SmileDirectClub Inc. is set at 0.63, with the Price to Sales ratio for SDC stock in the period of the last 12 months amounting to 5.27. The Price to Book ratio for the last quarter was 3.19, with the Price to Cash per share for the same quarter was set at 0.79.
How has SDC stock performed recently?
SmileDirectClub Inc. [SDC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -24.07. With this latest performance, SDC shares dropped by -15.00% in over the last four-week period, additionally sinking by -3.26% over the last 6 months – not to mention a rise of 23.88% 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 SDC stock in for the last two-week period is set at 29.83, with the RSI for the last a single of trading hit 23.81, and the three-weeks RSI is set at 34.04 for SmileDirectClub Inc. [SDC]. The present Moving Average for the last 50 days of trading for this stock 10.74, while it was recorded at 10.47 for the last single week of trading, and 10.87 for the last 200 days.
SmileDirectClub Inc. [SDC]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and SmileDirectClub Inc. [SDC] shares currently have an operating margin of -28.16 and a Gross Margin at +63.68. SmileDirectClub Inc.’s Net Margin is presently recorded at -11.93.
Return on Total Capital for SDC is now -27.52, given the latest momentum, and Return on Invested Capital for the company is -12.69. Return on Equity for this stock declined to -24.44, with Return on Assets sitting at -8.85. When it comes to the capital structure of this company, SmileDirectClub Inc. [SDC] has a Total Debt to Total Equity ratio set at 143.86. Additionally, SDC Total Debt to Total Capital is recorded at 58.99, with Total Debt to Total Assets ending up at 50.09. Long-Term Debt to Equity for the company is recorded at 136.56, with the Long-Term Debt to Total Capital now at 56.00.
Reflecting on the efficiency of the workforce at the company, SmileDirectClub Inc. [SDC] managed to generate an average of -$19,591 per employee. Receivables Turnover for the company is 2.85 with a Total Asset Turnover recorded at a value of 0.74.SmileDirectClub Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.00 and a Current Ratio set at 3.10.
Earnings analysis for SmileDirectClub Inc. [SDC]
With the latest financial reports released by the company, SmileDirectClub Inc. posted -0.28/share EPS, while the average EPS was predicted by analysts to be reported at -0.19/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -47.40%. 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 SDC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for SmileDirectClub Inc. go to 43.10%.
Insider trade positions for SmileDirectClub Inc. [SDC]
There are presently around $835 million, or 66.60% of SDC stock, in the hands of institutional investors. The top three institutional holders of SDC stocks are: CLAYTON, DUBILIER & RICE, LLC with ownership of 11,903,167, which is approximately -55.755% of the company’s market cap and around 2.40% of the total institutional ownership; VICTORY CAPITAL MANAGEMENT INC, holding 8,463,827 shares of the stock with an approximate value of $89.97 million in SDC stocks shares; and VANGUARD GROUP INC, currently with $82.26 million in SDC stock with ownership of nearly 10.358% of the company’s market capitalization.
Positions in SmileDirectClub Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 121 institutional holders increased their position in SmileDirectClub Inc. [NASDAQ:SDC] by around 24,267,920 shares. Additionally, 64 investors decreased positions by around 24,236,029 shares, while 22 investors held positions by with 30,036,767 shares. The mentioned changes placed institutional holdings at 78,540,716 shares, according to the latest SEC report filing. SDC stock had 55 new institutional investments in for a total of 9,323,518 shares, while 31 institutional investors sold positions of 3,709,233 shares during the same period.