It is Poised to be a Bull Market for Skillz Inc. (SKLZ)

Skillz Inc. (NYSE: SKLZ) stock jumped 6.05% on Monday to $0.85 against a previous-day closing price of $0.80. With 7.58 million shares changed hands, the volume of the stock remained lighter than its average volume of 10.14 million shares. During the session, the Electronic Gaming & Multimedia company that operates in wider Communication Services sector, reached to the highest price of $0.8549 whereas the lowest price it dropped to was $0.7912. The 52-week range on SKLZ shows that it touched its highest point at $5.43 and its lowest point at $0.45 during that stretch. It currently has a 1-year price target of $1.44.

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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 SKLZ was up-trending over the past week, with a rise of 14.90%, but this was up by 39.46% over a month. Three-month performance dropped to -20.70% while six-month performance fell -43.05%. The stock lost -84.11% in the past year, while it has gained 67.52% so far this year. A look at the trailing 12-month EPS for SKLZ yields -0.95 with Next year EPS estimates of -0.46. For the next quarter, that number is -0.12. This implies an EPS growth rate of 4.50% for this year and 42.50% for next year.

Float and Shares Shorts:

At present, 413.83 million SKLZ shares are outstanding with a float of 281.44 million shares on hand for trading. On Oct 13, 2022, short shares totaled 41.46 million, which was 9.89% higher than short shares on Sep 14, 2022. In addition to Mr. Andrew C. Paradise as the firm’s Co-Founder, CEO, Pres & Chairman, Mr. Casey Chafkin serves as its Co-founder, Chief Revenue Officer, Treasurer & Director.

Institutional Ownership:

Through their ownership of 48.71% of SKLZ’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 20.31% of SKLZ, in contrast to 12.12% held by mutual funds. Shares owned by individuals account for 11.68%. As the largest shareholder in SKLZ with 5.57% of the stake, Wildcat Capital Management LLC holds 19,596,988 shares worth 19,596,988. A second-largest stockholder of SKLZ, BlackRock Fund Advisors, holds 18,690,342 shares, controlling over 5.32% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SKLZ, holding 16,490,683 shares or 4.69% stake. With a 1.99% stake in SKLZ, the iShares Russell 2000 ETF is the largest stakeholder. A total of 6,986,015 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.28% of SKLZ stock, is the second-largest Mutual Fund holder. It holds 4,509,252 shares valued at 2.29 million. Vanguard Extended Market Index Fu holds 1.08% of the stake in SKLZ, owning 3,805,210 shares worth 1.93 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SKLZ since 7 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 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 SKLZ analysts setting a high price target of $3.75 and a low target of $0.60, the average target price over the next 12 months is $1.44. Based on these targets, SKLZ could surge 341.18% to reach the target high and fall by -29.41% to reach the target low. Reaching the average price target will result in a growth of 69.41% 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. SKLZ will report FY 2022 earnings on 02/22/2024. Analysts have provided yearly estimates in a range of -$0.72 being high and -$0.85 being low. For SKLZ, this leads to a yearly average estimate of -$0.81. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Skillz Inc. surprised analysts by -$0.06 when it reported -$0.19 EPS against a consensus estimate of -$0.13. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.10 and the low estimate is -$0.15. The average estimate for the next quarter is thus -$0.12.

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