Afya Limited (NASDAQ: AFYA) stock fell -7.60% on Tuesday to $14.59 against a previous-day closing price of $15.79. With 0.69 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.32 million shares. During the session, the Education & Training Services company that operates in wider Consumer Defensive sector, reached to the highest price of $16.05 whereas the lowest price it dropped to was $14.01. The 52-week range on AFYA shows that it touched its highest point at $17.02 and its lowest point at $8.73 during that stretch. It currently has a 1-year price target of $17.09. Beta for the stock currently stands at 0.89.
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 AFYA was down-trending over the past week, with a drop of -9.77%, but this was up by 15.89% over a month. Three-month performance surged to 10.70% while six-month performance rose 36.23%. The stock gained 7.83% in the past year, while it has lost -7.13% so far this year. A look at the trailing 12-month EPS for AFYA yields 0.66 with Next year EPS estimates of 6.86. For the next quarter, that number is 1.38. This implies an EPS growth rate of -23.90% for this year and 29.92% for next year. EPS is expected to grow by 6.08% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -20.41%.
Float and Shares Shorts:
At present, 90.48 million AFYA shares are outstanding with a float of 35.83 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.47 million, which was 0.53% higher than short shares on Sep 14, 2022. In addition to Mr. Virgilio Deloy Capobianco Gibbon as the firm’s Chief Exec. Officer, Mr. Luis Andre Carpintero Blanco serves as its Chief Financial Officer.
Through their ownership of 56.03% of AFYA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 34.40% of AFYA, in contrast to 18.14% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in AFYA with 9.73% of the stake, BAMCO, Inc. holds 4,373,723 shares worth 4,373,723. A second-largest stockholder of AFYA, Fidelity Management & Research Co, holds 1,497,663 shares, controlling over 3.33% of the firm’s shares. Oaktree Capital Management LP is the third largest shareholder in AFYA, holding 1,439,270 shares or 3.20% stake. With a 4.60% stake in AFYA, the Baron Emerging Markets Fund is the largest stakeholder. A total of 2,070,577 shares are owned by the mutual fund manager. The Baron Global Advantage Fund, which owns about 3.14% of AFYA stock, is the second-largest Mutual Fund holder. It holds 1,411,896 shares valued at 20.81 million. Fidelity Inv. Trust – Latin Ameri holds 2.42% of the stake in AFYA, owning 1,086,198 shares worth 16.01 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AFYA since 8 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 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 AFYA analysts setting a high price target of $113.59 and a low target of $68.85, the average target price over the next 12 months is $89.67. Based on these targets, AFYA could surge 678.55% to reach the target high and rise by 371.9% to reach the target low. Reaching the average price target will result in a growth of 514.6% 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. AFYA will report FY 2022 earnings on 03/31/2023. Analysts have provided yearly estimates in a range of $6.27 being high and $4.16 being low. For AFYA, this leads to a yearly average estimate of $5.24. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Afya Limited surprised analysts by -$0.02 when it reported $0.24 EPS against a consensus estimate of $0.26. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $1.61 and the low estimate is $0.75. The average estimate for the next quarter is thus $1.29.