NortonLifeLock Inc. (NASDAQ: NLOK) stock jumped 1.34% on Friday to $21.19 against a previous-day closing price of $20.91. With 6.79 million shares changed hands, the volume of the stock remained heavier than its average volume of 5.91 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $21.71 whereas the lowest price it dropped to was $21.17. The 52-week range on NLOK shows that it touched its highest point at $30.92 and its lowest point at $20.76 during that stretch. It currently has a 1-year price target of $26.54. With its current market cap of 14.32 billion, NLOK has annualized dividend of $0.50 while the current yield stands at 2.36%. Beta for the stock currently stands at 0.67.
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 NLOK was down-trending over the past week, with a drop of -1.58%, but this was down by -8.82% over a month. Three-month performance dropped to -4.33% while six-month performance fell -22.64%. The stock lost -15.17% in the past year, while it has lost -18.44% so far this year. A look at the trailing 12-month EPS for NLOK yields 1.44 with Next year EPS estimates of 1.95. For the next quarter, that number is 0.45. This implies an EPS growth rate of 21.90% for this year and 6.86% for next year. EPS is expected to grow by 8.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 41.70%.
Float and Shares Shorts:
At present, 665.57 million NLOK shares are outstanding with a float of 613.39 million shares on hand for trading. On Aug 30, 2022, short shares totaled 17.21 million, which was 3.01% higher than short shares on Jul 28, 2022. In addition to Mr. Vincent Pilette as the firm’s CEO & Director, Ms. Natalie Marie Derse serves as its EVP, CFO & Principal Accounting Officer.
Through their ownership of 84.75% of NLOK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.04% of NLOK, in contrast to 48.84% held by mutual funds. Shares owned by individuals account for 3.54%. As the largest shareholder in NLOK with 11.22% of the stake, The Vanguard Group, Inc. holds 64,080,716 shares worth 64,080,716. A second-largest stockholder of NLOK, BlackRock Fund Advisors, holds 38,116,211 shares, controlling over 6.67% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in NLOK, holding 26,091,088 shares or 4.57% stake. With a 2.85% stake in NLOK, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 16,267,754 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.27% of NLOK stock, is the second-largest Mutual Fund holder. It holds 12,985,061 shares valued at 293.33 million. Vanguard Mid Cap Index Fund holds 2.21% of the stake in NLOK, owning 12,616,668 shares worth 285.01 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 Jun 30, 2022, NLOK reported revenue of $707.00M and operating income of $263.00M. Over the past year, revenue came in at $2.82B while operating income stood at $979.00M. It generated $200.00M net income for the quarter, which came to $855.00M over the last twelve months. The EBITDA in the recently reported quarter was $292.00M and diluted EPS was $0.33. EBITDA for the full year was $1.13B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NLOK since 7 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 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 NLOK analysts setting a high price target of $29.00 and a low target of $24.80, the average target price over the next 12 months is $26.95. Based on these targets, NLOK could surge 36.86% to reach the target high and rise by 17.04% to reach the target low. Reaching the average price target will result in a growth of 27.18% 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. NLOK will report FY 2023 earnings on 05/04/2023. Analysts have provided yearly estimates in a range of $1.84 being high and $1.80 being low. For NLOK, this leads to a yearly average estimate of $1.82. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NortonLifeLock Inc. surprised analysts by $0.02 when it reported $0.45 EPS against a consensus estimate of $0.43. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.45 and the low estimate is $0.45. The average estimate for the next quarter is thus $0.45.
Dividends & Yield:
In terms of dividends, NLOK has a current ratio of $0.5, which is $0.5 over the trailing 12-months, while a dividend of $0.4 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and NLOK currently yields $2.36. In the past year, NLOK’s dividend yield has been $2.36, but when looking at the stock over the past five years, its yield has been $1.72. Accordingly, NLOK has a current buyback yield of $2.13. This was $2.13 for the TTM, and it was $4.11 for the past five years.
Summary of Insider Activity:
Insiders traded NLOK stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 170,157 shares were bought while 0 shares were sold. The number of buy transactions has increased to 11 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 3,054,484 while 142,225 shares were sold.