Adversity is less terrifying than hope: ESS Tech Inc. (GWH)

ESS Tech Inc. (NYSE: GWH) stock jumped 6.94% on Friday to $2.31 against a previous-day closing price of $2.16. With 1.2 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.41 million shares. During the session, the Electrical Equipment & Parts company that operates in wider Industrials sector, reached to the highest price of $2.3300 whereas the lowest price it dropped to was $2.0800. The 52-week range on GWH shows that it touched its highest point at $7.47 and its lowest point at $2.02 during that stretch. It currently has a 1-year price target of $6.56.

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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 GWH was down-trending over the past week, with a drop of -5.71%, but this was down by -7.23% over a month. Three-month performance dropped to -33.81% while six-month performance fell -35.47%. The stock lost -68.27% in the past year, while it has lost -4.94% so far this year. A look at the trailing 12-month EPS for GWH yields -2.51 with Next year EPS estimates of -0.58.

Float and Shares Shorts:

At present, 152.86 million GWH shares are outstanding with a float of 84.82 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.45 million, which was 5.51% higher than short shares on Sep 14, 2022. In addition to Mr. Eric P. Dresselhuys as the firm’s CEO & Director, Mr. Craig E. Evans serves as its Co-Founder, Pres & Director.

Institutional Ownership:

Through their ownership of 40.95% of GWH’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.43% of GWH, in contrast to 45.00% held by mutual funds. Shares owned by individuals account for 13.37%. As the largest shareholder in GWH with 2.72% of the stake, BlackRock Fund Advisors holds 4,169,791 shares worth 4,169,791. A second-largest stockholder of GWH, Invesco Capital Management LLC, holds 3,278,983 shares, controlling over 2.14% of the firm’s shares. GO ETF Solutions LLP is the third largest shareholder in GWH, holding 3,179,303 shares or 2.07% stake. With a 2.82% stake in GWH, the Invesco WilderHill Clean Energy E is the largest stakeholder. A total of 4,313,725 shares are owned by the mutual fund manager. The L&G Battery Value-Chain UCITS ETF, which owns about 2.07% of GWH stock, is the second-largest Mutual Fund holder. It holds 3,179,303 shares valued at 7.73 million. iShares Russell 2000 ETF holds 1.17% of the stake in GWH, owning 1,797,246 shares worth 4.37 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GWH since 8 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 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 GWH analysts setting a high price target of $11.00 and a low target of $4.00, the average target price over the next 12 months is $6.56. Based on these targets, GWH could surge 376.19% to reach the target high and rise by 73.16% to reach the target low. Reaching the average price target will result in a growth of 183.98% 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. GWH will report FY 2022 earnings on 02/22/2024. Analysts have provided yearly estimates in a range of -$0.48 being high and -$0.72 being low. For GWH, this leads to a yearly average estimate of -$0.55. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ESS Tech Inc. surprised analysts by -$0.04 when it reported -$0.21 EPS against a consensus estimate of -$0.17. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is -$0.15 and the low estimate is -$0.24. The average estimate for the next quarter is thus -$0.19.

Summary of Insider Activity:

Insiders traded GWH stock several times over the past three months with 1 Buys and 5 Sells. In these transactions, 19,100 shares were bought while 128,906 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 1,646,012 while 417,251 shares were sold.

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