Mister Car Wash Inc. (NYSE: MCW) stock jumped 1.13% on Friday to $8.97 against a previous-day closing price of $8.87. With 1.4 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.51 million shares. During the session, the Personal Services company that operates in wider Consumer Cyclical sector, reached to the highest price of $9.25 whereas the lowest price it dropped to was $8.80. The 52-week range on MCW shows that it touched its highest point at $19.82 and its lowest point at $8.62 during that stretch. It currently has a 1-year price target of $14.78.
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 MCW was down-trending over the past week, with a drop of -13.92%, but this was down by -11.80% over a month. Three-month performance dropped to -24.30% while six-month performance fell -44.32%. The stock lost -49.29% in the past year, while it has lost -50.74% so far this year. A look at the trailing 12-month EPS for MCW yields 0.42 with Next year EPS estimates of 0.44. For the next quarter, that number is 0.09. This implies an EPS growth rate of -138.20% for this year and 15.75% for next year. EPS is expected to grow by 12.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -43.00%.
Float and Shares Shorts:
At present, 302.67 million MCW shares are outstanding with a float of 300.42 million shares on hand for trading. On Jul 14, 2022, short shares totaled 14.4 million, which was 4.76% higher than short shares on Jun 14, 2022. In addition to Mr. John Lai as the firm’s Chairperson, Pres & CEO, Mr. Jedidiah Marc Gold serves as its CFO & Treasurer.
Through their ownership of 99.97% of MCW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 73.34% of MCW, in contrast to 15.79% held by mutual funds. Shares owned by individuals account for 14.74%. As the largest shareholder in MCW with 4.43% of the stake, Wasatch Advisors, Inc. holds 13,484,122 shares worth 13,484,122. A second-largest stockholder of MCW, Sun Life Capital Management, holds 9,269,238 shares, controlling over 3.05% of the firm’s shares. Fidelity Investments Canada ULC is the third largest shareholder in MCW, holding 9,075,000 shares or 2.98% stake. With a 1.27% stake in MCW, the Wasatch Core Growth Fund is the largest stakeholder. A total of 3,874,565 shares are owned by the mutual fund manager. The Fidelity Greater Canada Fund, which owns about 1.13% of MCW stock, is the second-largest Mutual Fund holder. It holds 3,444,036 shares valued at 34.13 million. Wasatch Small Cap Growth Fund holds 1.03% of the stake in MCW, owning 3,124,282 shares worth 30.96 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MCW since 10 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 3 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 MCW analysts setting a high price target of $28.00 and a low target of $10.00, the average target price over the next 12 months is $14.78. Based on these targets, MCW could surge 212.15% to reach the target high and rise by 11.48% to reach the target low. Reaching the average price target will result in a growth of 64.77% 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. MCW will report FY 2022 earnings on 03/23/2023. Analysts have provided yearly estimates in a range of $0.39 being high and $0.32 being low. For MCW, this leads to a yearly average estimate of $0.37. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Mister Car Wash Inc. surprised analysts by -$0.01 when it reported $0.11 EPS against a consensus estimate of $0.12. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $0.09 and the low estimate is $0.08. The average estimate for the next quarter is thus $0.09.
Summary of Insider Activity:
Insiders traded MCW stock several times over the past three months with 0 Buys and 5 Sells. In these transactions, 0 shares were bought while 44,513 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 19 over the past year. The total number of shares bought during that period was 156,657 while 469,230 shares were sold.