Hollysys Automation Technologies Ltd. [NASDAQ: HOLI] price surged by 5.82 percent to reach at $0.82. The company report on May 26, 2021 that Buyer Consortium Comments on Recent Financial and Operational Information Released by Hollysys Automation Technologies.
On May 13, 2021, Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) (the “Company”) disclosed financial condition and results of operations for the quarter and the nine-month period ended March 31, 2021, together with its review and analysis of the comparable periods for fiscal year 2020. The Company intended to “highlight” selected financial metrics by making comparisons to the low base numbers for the first three months of 2020, when the Company’s performance was severely and negatively affected by COVID-19, and sought to convince the public that the Company is on the right track under the current management. But a close look at these data, in particular by comparing them to 2019 pre-pandemic results, reveals significantly deteriorating financial and operational conditions of the Company since the sudden removal of previous management in July 2020.
Negative Net Operating Cash Flow Highlights Financial Struggle of Core Business Activities.
A sum of 1025839 shares traded at recent session while its average daily volume was at 293.44K shares. Hollysys Automation Technologies Ltd. shares reached a high of $15.18 and dropped to a low of $14.15 until finishing in the latest session at $14.90.
The one-year HOLI stock forecast points to a potential upside of 26.96. The average equity rating for HOLI stock is currently 1.80, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Hollysys Automation Technologies Ltd. [HOLI]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for HOLI shares is $20.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on HOLI stock is a recommendation set at 1.80. 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 Hollysys Automation Technologies Ltd. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 05, 2021. The new note on the price target was released on November 04, 2019, representing the official price target for Hollysys Automation Technologies Ltd. stock. Previously, the target price had yet another raise from $23 to $26, while JP Morgan kept a Overweight rating on HOLI stock.
The Average True Range (ATR) for Hollysys Automation Technologies Ltd. is set at 0.39, with the Price to Sales ratio for HOLI stock in the period of the last 12 months amounting to 1.56. The Price to Book ratio for the last quarter was 0.82, with the Price to Cash per share for the same quarter was set at 10.82. Price to Free Cash Flow for HOLI in the course of the last twelve months was 9.55 with Quick ratio for the last quarter at 3.10.
HOLI Stock Performance Analysis:
Hollysys Automation Technologies Ltd. [HOLI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.28. With this latest performance, HOLI shares gained by 17.69% in over the last four-week period, additionally plugging by 3.62% over the last 6 months – not to mention a rise of 8.36% 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 HOLI stock in for the last two-week period is set at 74.95, with the RSI for the last a single of trading hit 83.41, and the three-weeks RSI is set at 68.55 for Hollysys Automation Technologies Ltd. [HOLI]. The present Moving Average for the last 50 days of trading for this stock 13.27, while it was recorded at 13.98 for the last single week of trading, and 13.12 for the last 200 days.
Insight into Hollysys Automation Technologies Ltd. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Hollysys Automation Technologies Ltd. [HOLI] shares currently have an operating margin of +19.15 and a Gross Margin at +40.42. Hollysys Automation Technologies Ltd.’s Net Margin is presently recorded at +15.11.
Return on Total Capital for HOLI is now 10.15, given the latest momentum, and Return on Invested Capital for the company is 8.13. Return on Equity for this stock inclined to 8.22, with Return on Assets sitting at 5.94. When it comes to the capital structure of this company, Hollysys Automation Technologies Ltd. [HOLI] has a Total Debt to Total Equity ratio set at 2.22. Additionally, HOLI Total Debt to Total Capital is recorded at 2.18, with Total Debt to Total Assets ending up at 1.61. Long-Term Debt to Equity for the company is recorded at 1.94, with the Long-Term Debt to Total Capital now at 1.90.
Reflecting on the efficiency of the workforce at the company, Hollysys Automation Technologies Ltd. [HOLI] managed to generate an average of $22,044 per employee. Receivables Turnover for the company is 1.01 with a Total Asset Turnover recorded at a value of 0.39.Hollysys Automation Technologies Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.10 and a Current Ratio set at 3.20.
HOLI Stock EPS
With the latest financial reports released by the company, Hollysys Automation Technologies Ltd. posted 0.04/share EPS, while the average EPS was predicted by analysts to be reported at 0.38/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -89.50%. 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 HOLI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Hollysys Automation Technologies Ltd. go to 15.83%.
Hollysys Automation Technologies Ltd. [HOLI] Insider Position Details
There are presently around $721 million, or 85.00% of HOLI stock, in the hands of institutional investors. The top three institutional holders of HOLI stocks are: DAVIS SELECTED ADVISERS with ownership of 7,190,885, which is approximately 1.433% of the company’s market cap and around 40.50% of the total institutional ownership; M&G INVESTMENT MANAGEMENT LTD, holding 4,158,916 shares of the stock with an approximate value of $61.97 million in HOLI stocks shares; and PRUDENTIAL PLC, currently with $58.99 million in HOLI stock with ownership of nearly -14.617% of the company’s market capitalization.
Positions in Hollysys Automation Technologies Ltd. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 58 institutional holders increased their position in Hollysys Automation Technologies Ltd. [NASDAQ:HOLI] by around 6,136,216 shares. Additionally, 38 investors decreased positions by around 6,773,788 shares, while 16 investors held positions by with 35,508,637 shares. The mentioned changes placed institutional holdings at 48,418,641 shares, according to the latest SEC report filing. HOLI stock had 22 new institutional investments in for a total of 1,872,590 shares, while 13 institutional investors sold positions of 2,511,881 shares during the same period.