SMART Global Holdings Inc. [SGH] stock Reiterated by Needham analyst, price target now $40


SMART Global Holdings Inc. [NASDAQ: SGH] jumped around 0.07 points on Thursday, while shares priced at $18.87 at the close of the session, up 0.37%. The company report on June 29, 2022 that SGH to Acquire Stratus Technologies.

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SMART Global Holdings, Inc. (“SGH” or the “Company”) (Nasdaq: SGH) today announced that it has entered into a definitive agreement with affiliates of Siris Capital Group, LLC, to acquire Stratus Technologies (“Stratus”), a global leader in simplified, protected, and autonomous computing solutions in the data center and at the Edge. Under the terms of the agreement, SGH will pay $225 million in cash at closing and an earn-out payment of up to $50 million, based on the gross profit performance of the Stratus business during the first full 12 fiscal months of Stratus following the closing.

SMART Global Holdings Inc. stock is now -46.84% down from its year-to-date (YTD) trading value. SGH Stock saw the intraday high of $18.87 and lowest of $18.40 per share. The company’s 52-week high price is 37.25, which means current price is +24.97% above from all time high which was touched on 01/03/22.

Compared to the average trading volume of 702.79K shares, SGH reached a trading volume of 2651766 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about SMART Global Holdings Inc. [SGH]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SGH shares is $33.83 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SGH stock is a recommendation set at 1.70. 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.

Needham have made an estimate for SMART Global Holdings Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 30, 2022. While these analysts kept the previous recommendation, Rosenblatt dropped their target price from $75 to $100. The new note on the price target was released on December 27, 2021, representing the official price target for SMART Global Holdings Inc. stock. Previously, the target price had yet another raise from $65 to $75, while Needham kept a Buy rating on SGH stock.

The Average True Range (ATR) for SMART Global Holdings Inc. is set at 0.97, with the Price to Sales ratio for SGH stock in the period of the last 12 months amounting to 0.49. The Price to Book ratio for the last quarter was 2.41, with the Price to Cash per share for the same quarter was set at 8.02. Price to Free Cash Flow for SGH in the course of the last twelve months was 9.58 with Quick ratio for the last quarter at 1.50.

How has SGH stock performed recently?

SMART Global Holdings Inc. [SGH] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 10.29. With this latest performance, SGH shares dropped by -5.89% in over the last four-week period, additionally sinking by -38.35% over the last 6 months – not to mention a drop of -22.27% 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 SGH stock in for the last two-week period is set at 49.51, with the RSI for the last a single of trading hit 57.45, and the three-weeks RSI is set at 46.11 for SMART Global Holdings Inc. [SGH]. The present Moving Average for the last 50 days of trading for this stock 20.92, while it was recorded at 18.26 for the last single week of trading, and 25.89 for the last 200 days.

SMART Global Holdings Inc. [SGH]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and SMART Global Holdings Inc. [SGH] shares currently have an operating margin of +6.33 and a Gross Margin at +19.74. SMART Global Holdings Inc.’s Net Margin is presently recorded at +1.42.

Return on Total Capital for SGH is now 15.55, given the latest momentum, and Return on Invested Capital for the company is 3.61. Return on Equity for this stock inclined to 7.20, with Return on Assets sitting at 2.00. When it comes to the capital structure of this company, SMART Global Holdings Inc. [SGH] has a Total Debt to Total Equity ratio set at 128.37. Additionally, SGH Total Debt to Total Capital is recorded at 56.21, with Total Debt to Total Assets ending up at 29.61. Long-Term Debt to Equity for the company is recorded at 120.19, with the Long-Term Debt to Total Capital now at 52.63.

Reflecting on the efficiency of the workforce at the company, SMART Global Holdings Inc. [SGH] managed to generate an average of $5,428 per employee. Receivables Turnover for the company is 5.50 with a Total Asset Turnover recorded at a value of 1.41.SMART Global Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.50 and a Current Ratio set at 2.20.

Earnings analysis for SMART Global Holdings Inc. [SGH]

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 SGH. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for SMART Global Holdings Inc. go to 9.92%.

Insider trade positions for SMART Global Holdings Inc. [SGH]

There are presently around $1,007 million, in the hands of institutional investors. The top three institutional holders of SGH stocks are: BLACKROCK INC. with ownership of 7,304,224, which is approximately 11.358% of the company’s market cap and around 3.60% of the total institutional ownership; AMERIPRISE FINANCIAL INC, holding 6,122,039 shares of the stock with an approximate value of $115.09 million in SGH stocks shares; and VANGUARD GROUP INC, currently with $80.31 million in SGH stock with ownership of nearly 0.481% of the company’s market capitalization.

Positions in SMART Global Holdings Inc. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 129 institutional holders increased their position in SMART Global Holdings Inc. [NASDAQ:SGH] by around 6,850,998 shares. Additionally, 97 investors decreased positions by around 4,972,222 shares, while 23 investors held positions by with 41,755,408 shares. The mentioned changes placed institutional holdings at 53,578,628 shares, according to the latest SEC report filing. SGH stock had 40 new institutional investments in for a total of 497,225 shares, while 36 institutional investors sold positions of 1,927,980 shares during the same period.