A significant driver of top-line growth: Skillsoft Corp. (SKIL)

Skillsoft Corp. (NYSE: SKIL) stock jumped 2.51% on Friday to $4.08 against a previous-day closing price of $3.98. With 1.08 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.7 million shares. During the session, the Education & Training Services company that operates in wider Consumer Defensive sector, reached to the highest price of $4.1300 whereas the lowest price it dropped to was $3.9900. The 52-week range on SKIL shows that it touched its highest point at $12.88 and its lowest point at $3.40 during that stretch. It currently has a 1-year price target of $8.70.

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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 SKIL was up-trending over the past week, with a rise of 2.26%, but this was up by 3.03% over a month. Three-month performance dropped to -20.16% while six-month performance fell -46.25%. The stock lost -52.78% in the past year, while it has lost -55.41% so far this year. A look at the trailing 12-month EPS for SKIL yields -0.59 with Next year EPS estimates of -0.47. For the next quarter, that number is -0.15. This implies an EPS growth rate of -103.60% for this year and 27.90% for next year.

Float and Shares Shorts:

At present, 142.21 million SKIL shares are outstanding with a float of 72.04 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.57 million, which was 2.79% higher than short shares on Jun 14, 2022. In addition to Mr. Jeffrey R. Tarr as the firm’s CEO & Director, Mr. Gary W. Ferrera serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 74.09% of SKIL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.90% of SKIL, in contrast to 3.04% held by mutual funds. Shares owned by individuals account for 26.92%. As the largest shareholder in SKIL with 5.37% of the stake, Paradice Investment Management LL holds 8,796,986 shares worth 8,796,986. A second-largest stockholder of SKIL, Lodbrok Capital LLP, holds 8,540,367 shares, controlling over 5.21% of the firm’s shares. Pelham Capital Ltd. is the third largest shareholder in SKIL, holding 5,200,322 shares or 3.17% stake. With a 1.55% stake in SKIL, the St. James Place Unit Trust – Glob is the largest stakeholder. A total of 2,543,969 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.05% of SKIL stock, is the second-largest Mutual Fund holder. It holds 1,716,308 shares valued at 6.04 million. iShares Russell 2000 ETF holds 1.02% of the stake in SKIL, owning 1,672,787 shares worth 5.89 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SKIL since 6 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 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 SKIL analysts setting a high price target of $13.50 and a low target of $4.00, the average target price over the next 12 months is $8.70. Based on these targets, SKIL could surge 230.88% to reach the target high and fall by -1.96% to reach the target low. Reaching the average price target will result in a growth of 113.24% 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. SKIL will report FY 2023 earnings on 04/06/2023. Analysts have provided yearly estimates in a range of $0.17 being high and -$0.70 being low. For SKIL, this leads to a yearly average estimate of -$0.44. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Skillsoft Corp. surprised analysts by -$0.00 when it reported -$0.15 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was $0.16. Based on analyst estimates, the high estimate for the next quarter is -$0.10 and the low estimate is -$0.19. The average estimate for the next quarter is thus -$0.16.

Summary of Insider Activity:

Insiders traded SKIL stock several times over the past three months with 15 Buys and 12 Sells. In these transactions, 471,042 shares were bought while 17,385,457 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 16,075,374 while 17,575,126 shares were sold.

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