Healthy Upside Potential: HashiCorp Inc. (HCP)

HashiCorp Inc. (NASDAQ: HCP) stock jumped 3.48% on Monday to $29.42 against a previous-day closing price of $28.43. With 1.37 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.55 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $29.59 whereas the lowest price it dropped to was $28.08. The 52-week range on HCP shows that it touched its highest point at $83.12 and its lowest point at $21.50 during that stretch. It currently has a 1-year price target of $36.23.

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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 HCP was up-trending over the past week, with a rise of 0.55%, but this was up by 9.65% over a month. Three-month performance dropped to -3.79% while six-month performance fell -12.02%. The stock lost -53.28% in the past year, while it has gained 7.61% so far this year. A look at the trailing 12-month EPS for HCP yields -2.40 with Next year EPS estimates of -0.65. For the next quarter, that number is -0.23. This implies an EPS growth rate of -241.20% for this year and 8.50% for next year.

Float and Shares Shorts:

At present, 187.08 million HCP shares are outstanding with a float of 73.56 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.31 million, which was 4.46% higher than short shares on Sep 14, 2022. In addition to Mr. David McJannet as the firm’s CEO & Chairman, Mr. Armon Dadgar serves as its Co-Founder, CTO & Director.


Institutional Ownership:

Through their ownership of 65.86% of HCP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.34% of HCP, in contrast to 3.09% held by mutual funds. Shares owned by individuals account for 21.64%. As the largest shareholder in HCP with 11.06% of the stake, T. Rowe Price Associates, Inc. holds 9,067,239 shares worth 9,067,239. A second-largest stockholder of HCP, Baillie Gifford & Co., holds 5,580,635 shares, controlling over 6.81% of the firm’s shares. JPMorgan Investment Management, I is the third largest shareholder in HCP, holding 3,956,170 shares or 4.83% stake. With a 5.42% stake in HCP, the T Rowe Price New Horizons Fund is the largest stakeholder. A total of 4,439,349 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.33% of HCP stock, is the second-largest Mutual Fund holder. It holds 1,912,703 shares valued at 52.29 million. Vanguard US Growth Fund holds 2.27% of the stake in HCP, owning 1,860,095 shares worth 50.85 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HCP since 16 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 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 HCP analysts setting a high price target of $42.00 and a low target of $30.00, the average target price over the next 12 months is $36.23. Based on these targets, HCP could surge 42.76% to reach the target high and rise by 1.97% to reach the target low. Reaching the average price target will result in a growth of 23.15% 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. HCP will report FY 2023 earnings on 03/10/2023. Analysts have provided yearly estimates in a range of -$0.62 being high and -$0.73 being low. For HCP, this leads to a yearly average estimate of -$0.70. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. HashiCorp Inc. surprised analysts by $0.19 when it reported -$0.13 EPS against a consensus estimate of -$0.32. The surprise factor in the prior quarter was $0.14. Based on analyst estimates, the high estimate for the next quarter is -$0.20 and the low estimate is -$0.25. The average estimate for the next quarter is thus -$0.23.

Summary of Insider Activity:

Insiders traded HCP stock several times over the past three months with 28 Buys and 23 Sells. In these transactions, 6,049,873 shares were bought while 4,000,345 shares were sold. The number of buy transactions has increased to 117 while that of sell transactions has risen to 66 over the past year. The total number of shares bought during that period was 18,136,309 while 14,772,162 shares were sold.

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