Ceridian HCM Holding Inc. (NYSE: CDAY) stock jumped 10.38% on Friday to $64.88 against a previous-day closing price of $58.78. With 3.98 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.81 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $65.68 whereas the lowest price it dropped to was $63.26. The 52-week range on CDAY shows that it touched its highest point at $130.37 and its lowest point at $43.23 during that stretch. It currently has a 1-year price target of $72.46. Beta for the stock currently stands at 1.55.
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 CDAY was up-trending over the past week, with a rise of 18.70%, but this was up by 29.63% over a month. Three-month performance surged to 5.94% while six-month performance fell -16.82%. The stock lost -35.12% in the past year, while it has lost -37.89% so far this year. A look at the trailing 12-month EPS for CDAY yields -0.55 with Next year EPS estimates of 0.67. For the next quarter, that number is 0.10. This implies an EPS growth rate of 84.80% for this year and 45.04% for next year. EPS is expected to grow by 60.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.60%.
Float and Shares Shorts:
At present, 152.12 million CDAY shares are outstanding with a float of 151.14 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.52 million, which was 6.24% higher than short shares on Jun 14, 2022. In addition to Mr. David D. Ossip as the firm’s Chairman & Co-CEO, Ms. Leagh Erin Turner serves as its Co-CEO & Director.
Through their ownership of 112.30% of CDAY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 65.99% of CDAY, in contrast to 36.60% held by mutual funds. Shares owned by individuals account for 12.13%. As the largest shareholder in CDAY with 15.65% of the stake, T. Rowe Price Associates, Inc. holds 23,882,516 shares worth 23,882,516. A second-largest stockholder of CDAY, Capital Research & Management Co, holds 17,728,840 shares, controlling over 11.61% of the firm’s shares. Select Equity Group LP is the third largest shareholder in CDAY, holding 16,278,951 shares or 10.67% stake. With a 5.50% stake in CDAY, the American Funds AMCAP Fund is the largest stakeholder. A total of 8,388,440 shares are owned by the mutual fund manager. The T Rowe Price New Horizons Fund, which owns about 4.93% of CDAY stock, is the second-largest Mutual Fund holder. It holds 7,528,402 shares valued at 354.44 million. American Funds New Economy Fund holds 4.09% of the stake in CDAY, owning 6,242,061 shares worth 293.88 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CDAY since 17 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 2 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 CDAY analysts setting a high price target of $85.00 and a low target of $52.00, the average target price over the next 12 months is $69.38. Based on these targets, CDAY could surge 31.01% to reach the target high and fall by -19.85% to reach the target low. Reaching the average price target will result in a growth of 6.94% 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. CDAY will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $0.72 being high and $0.33 being low. For CDAY, this leads to a yearly average estimate of $0.54. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ceridian HCM Holding Inc. surprised analysts by $0.11 when it reported $0.21 EPS against a consensus estimate of $0.10. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.17 and the low estimate is $0.05. The average estimate for the next quarter is thus $0.11.
Summary of Insider Activity:
Insiders traded CDAY stock several times over the past three months with 7 Buys and 7 Sells. In these transactions, 26,341 shares were bought while 10,276 shares were sold. The number of buy transactions has increased to 48 while that of sell transactions has risen to 68 over the past year. The total number of shares bought during that period was 1,676,539 while 1,427,007 shares were sold.