For System1 Inc. [SST], Analyst sees a drop to $4. What next?

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System1 Inc. [NYSE: SST] traded at a low on 09/06/23, posting a -6.52 loss after which it closed the day’ session at $1.72. The company report on September 6, 2023 at 6:00 AM that System1 Confirms Receipt of Indication of Interest for Total Security From Just Develop It.

System1, Inc. (NYSE: SST) (“System1” or the “Company”), an omnichannel customer acquisition marketing platform, announced today that it is in receipt of a non-binding indication of interest from Just Develop It Limited (“Just Develop It”) regarding the possible acquisition of Total Security Limited (“Total Security”). The offer consists of $240 million in cash, the assumption of certain potential earnout payments in respect of Total Security and the delivery of approximately 29 million System1 shares held by Just Develop It and related persons.

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A special committee of the System1 board of directors has been formed that will evaluate among other things, this non-binding indication of interest. The special committee, together with its advisors, Solomon Partners and Weil, Gotshal & Manges LLP, are evaluating the offer and considering alternatives. There can be no assurance that the transaction described in the non-binding indication of interest, or any other transaction, will be completed or, if so, as to the timing, price and other terms and conditions of any such transaction. The Company does not intend to disclose developments with respect to this matter until such time as the board of directors approves a transaction or otherwise deems further disclosure appropriate, except as required by law or other regulatory requirements.

The results of the trading session contributed to over 4825832 shares changing hands. Over the past one week, the price volatility of System1 Inc. stands at 10.85% while the volatility over the past one month is 10.11%.

The market cap for SST stock reached $190.51 million, with 93.42 million shares outstanding and 47.74 million shares in the current float. Compared to the average trading volume of 150.46K shares, SST reached a trading volume of 4825832 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about System1 Inc. [SST]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SST shares is $4.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SST stock is a recommendation set at 2.30. 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.

BofA Securities have made an estimate for System1 Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on November 08, 2022.

The Average True Range (ATR) for System1 Inc. is set at 0.21, with the Price to Sales ratio for SST stock in the period of the last 12 months amounting to 0.27. The Price to Book ratio for the last quarter was 0.49, with the Price to Cash per share for the same quarter was set at 0.08. Price to Free Cash Flow for SST in the course of the last twelve months was 50.13 with Quick ratio for the last quarter at 0.50.

How has SST stock performed recently?

System1 Inc. [SST] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.44. With this latest performance, SST shares dropped by -34.35% in over the last four-week period, additionally sinking by -58.95% over the last 6 months – not to mention a drop of -85.16% 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 SST stock in for the last two-week period is set at 31.22, with the RSI for the last a single of trading hit 32.94, and the three-weeks RSI is set at 31.47 for System1 Inc. [SST]. The present Moving Average for the last 50 days of trading for this stock 2.9720, while it was recorded at 1.8160 for the last single week of trading, and 3.9286 for the last 200 days.

System1 Inc. [SST]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and System1 Inc. [SST] shares currently have an operating margin of -21.60 and a Gross Margin at -12.03. System1 Inc.’s Net Margin is presently recorded at -45.18.

Return on Total Capital for SST is now -26.40, given the latest momentum, and Return on Invested Capital for the company is -59.92. Return on Equity for this stock declined to -88.79, with Return on Assets sitting at -44.51. When it comes to the capital structure of this company, System1 Inc. [SST] has a Total Debt to Total Equity ratio set at 110.04. Additionally, SST Total Debt to Total Capital is recorded at 52.39, with Total Debt to Total Assets ending up at 36.41. Long-Term Debt to Equity for the company is recorded at 105.57, with the Long-Term Debt to Total Capital now at 50.26.

Reflecting on the efficiency of the workforce at the company, System1 Inc. [SST] managed to generate an average of -$746,916 per employee. Receivables Turnover for the company is 20.43 with a Total Asset Turnover recorded at a value of 0.99.System1 Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 0.50.

Insider trade positions for System1 Inc. [SST]

The top three institutional holders of SST stocks are: VANGUARD GROUP INC with ownership of 1.31 billion shares, which is approximately 8.2089%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $170.67 trillion in SST stocks shares; and BERKSHIRE HATHAWAY INC, currently with $150.98 trillion in SST stock with ownership which is approximately 5.7381%.

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