It is Poised to be a Bull Market for Sonder Holdings Inc. (SOND)

Sonder Holdings Inc. (NASDAQ: SOND) stock jumped 23.02% on Friday to $1.55 against a previous-day closing price of $1.26. With 1.56 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.23 million shares. During the session, the Lodging company that operates in wider Consumer Cyclical sector, reached to the highest price of $1.5600 whereas the lowest price it dropped to was $1.2400. The 52-week range on SOND shows that it touched its highest point at $10.88 and its lowest point at $0.90 during that stretch. It currently has a 1-year price target of $3.75.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SOND was up-trending over the past week, with a rise of 58.99%, but this was up by 50.49% over a month. Three-month performance dropped to -65.40% while six-month performance fell -83.44%. The stock lost -84.33% in the past year, while it has lost -84.45% so far this year. For the next quarter, that number is -0.31. This implies an EPS growth rate of -17.60% for this year and 30.30% for next year.

Float and Shares Shorts:

At present, 217.31 million SOND shares are outstanding with a float of 157.87 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.47 million, which was 2.52% higher than short shares on Jun 14, 2022. In addition to Mr. Francis Davidson as the firm’s Co-Founder, CEO & Chairman, Mr. Sanjay Banker serves as its CFO & Pres.

Institutional Ownership:

Through their ownership of 48.77% of SOND’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.96% of SOND, in contrast to 17.41% held by mutual funds. Shares owned by individuals account for 1.55%. As the largest shareholder in SOND with 8.22% of the stake, Fidelity Management & Research Co holds 17,828,891 shares worth 17,828,891. A second-largest stockholder of SOND, Atreides Management LP, holds 7,466,070 shares, controlling over 3.44% of the firm’s shares. Antara Capital LP is the third largest shareholder in SOND, holding 6,017,141 shares or 2.77% stake. With a 1.12% stake in SOND, the Fidelity Growth Company Fund is the largest stakeholder. A total of 2,427,770 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 0.91% of SOND stock, is the second-largest Mutual Fund holder. It holds 1,978,206 shares valued at 2.06 million. iShares Russell 2000 ETF holds 0.44% of the stake in SOND, owning 944,600 shares worth 0.98 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, SOND reported revenue of $80.47M and operating income of -$95.76M. Over the past year, revenue came in at $48.91M while operating income stood at -$33.62M. It generated $22.39M net income for the quarter, which came to $90.35M over the last twelve months. The EBITDA in the recently reported quarter was -$25.60M and diluted EPS was -$0.18. EBITDA for the full year was -$1.35M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SOND since 3 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SOND analysts setting a high price target of $4.00 and a low target of $3.50, the average target price over the next 12 months is $3.75. Based on these targets, SOND could surge 158.06% to reach the target high and rise by 125.81% to reach the target low. Reaching the average price target will result in a growth of 141.94% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SOND will report FY 2022 earnings on 03/08/2023. Analysts have provided yearly estimates in a range of -$0.46 being high and -$0.59 being low. For SOND, this leads to a yearly average estimate of -$0.55. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sonder Holdings Inc. surprised analysts by $0.52 when it reported $0.10 EPS against a consensus estimate of -$0.42. The surprise factor in the prior quarter was -$8.72. Based on analyst estimates, the high estimate for the next quarter is -$0.25 and the low estimate is -$0.34. The average estimate for the next quarter is thus -$0.29.



Summary of Insider Activity:

Insiders traded SOND stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 7 while that of sell transactions has risen to 2 over the past year. The total number of shares bought during that period was 22,623,177 while 3,658,536 shares were sold.

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