JP Morgan slashes price target on SmileDirectClub Inc. [SDC] – find out why.

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SmileDirectClub Inc. [NASDAQ: SDC] loss -0.62% on the last trading session, reaching $7.99 price per share at the time. The company report on May 18, 2021 that SDC ALERT – Nationally Ranked Shareholder Rights Firm Labaton Sucharow is Investigating SmileDirectClub (NASDAQ: SDC) For Potential Securities Violations and Breach of Fiduciary Duty.

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Labaton Sucharow, a nationally ranked and award-winning shareholder rights law firm, is investigating potential securities violations and breach of fiduciary duty claims against SmileDirectClub (NASDAQ:SDC).

SmileDirectClub tumbled on May 4, after the oral care company said a cyberattack last month could cost it as much as $15 million in revenues. Shares of the Nashville company were down as much as 14.3%. The company said in a regulatory filing that it had experienced a systems outage caused by a “cybersecurity incident” on April 14. SmileDirectClub said 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.” But the company said the incident “may have a material impact on its business operations and financial results in the second quarter.”.

SmileDirectClub Inc. represents 387.52 million in outstanding shares, while the company has a total market value of $3.02 billion with the latest information. SDC stock price has been found in the range of $7.8917 to $8.10.

If compared to the average trading volume of 5.23M shares, SDC reached a trading volume of 4359418 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 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.

JP Morgan have made an estimate for SmileDirectClub Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on May 11, 2021. The new note on the price target was released on December 08, 2020, representing the official price target for SmileDirectClub Inc. stock. Previously, the target price had yet another raise from $11 to $14, while Stifel kept a Buy rating on SDC stock.

The Average True Range (ATR) for SmileDirectClub Inc. is set at 0.53, with the Price to Sales ratio for SDC stock in the period of the last 12 months amounting to 4.59. The Price to Book ratio for the last quarter was 14.02, with the Price to Cash per share for the same quarter was set at 1.15.

Trading performance analysis for SDC stock

SmileDirectClub Inc. [SDC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.41. With this latest performance, SDC shares dropped by -18.64% in over the last four-week period, additionally sinking by -19.78% over the last 6 months – not to mention a rise of 11.59% 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 34.22, with the RSI for the last a single of trading hit 34.11, and the three-weeks RSI is set at 35.71 for SmileDirectClub Inc. [SDC]. The present Moving Average for the last 50 days of trading for this stock 10.04, while it was recorded at 7.88 for the last single week of trading, and 10.83 for the last 200 days.

SmileDirectClub Inc. [SDC]: A deeper dive into fundamental analysis

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 3.90 and a Current Ratio set at 4.10.

SmileDirectClub Inc. [SDC]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, SmileDirectClub Inc. posted -0.25/share EPS, while the average EPS was predicted by analysts to be reported at -0.14/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -78.60%. 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%.

An analysis of insider ownership at SmileDirectClub Inc. [SDC]

There are presently around $677 million, or 71.90% 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 0% 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 $67.63 million in SDC stocks shares; and VANGUARD GROUP INC, currently with $66.56 million in SDC stock with ownership of nearly 7.644% of the company’s market capitalization.

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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 104 institutional holders increased their position in SmileDirectClub Inc. [NASDAQ:SDC] by around 22,503,584 shares. Additionally, 85 investors decreased positions by around 12,603,214 shares, while 25 investors held positions by with 49,632,902 shares. The mentioned changes placed institutional holdings at 84,739,700 shares, according to the latest SEC report filing. SDC stock had 36 new institutional investments in for a total of 2,956,855 shares, while 44 institutional investors sold positions of 3,072,700 shares during the same period.

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