Taking on analysts’ expectations and winning: Akerna Corp. (KERN)

Akerna Corp. (NASDAQ: KERN) stock jumped 10.79% on Monday to $1.54 against a previous-day closing price of $1.39. With 0.23 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.7 million shares. During the session, the Health Information Services company that operates in wider Healthcare sector, reached to the highest price of $1.5400 whereas the lowest price it dropped to was $1.3500. The 52-week range on KERN shows that it touched its highest point at $33.00 and its lowest point at $0.66 during that stretch. It currently has a 1-year price target of $1.50. Beta for the stock currently stands at 2.68.

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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 KERN was down-trending over the past week, with a drop of -4.94%, but this was up by 86.31% over a month. Three-month performance dropped to -18.95% while six-month performance fell -49.38%. The stock lost -94.83% in the past year, while it has gained 123.12% so far this year. A look at the trailing 12-month EPS for KERN yields -42.77 with Next year EPS estimates of -1.91. For the next quarter, that number is -0.71. This implies an EPS growth rate of -15.70% for this year and 37.00% for next year.

Float and Shares Shorts:

At present, 4.43 million KERN shares are outstanding with a float of 4.30 million shares on hand for trading. On Dec 29, 2022, short shares totaled 0.29 million, which was 6.45% higher than short shares on Nov 29, 2022. In addition to Ms. Jessica Billingsley as the firm’s Founder, CEO & Chairman, Mr. David R. McCullough serves as its Chief Technology Officer.

Institutional Ownership:

Through their ownership of 9.23% of KERN’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.58% of KERN, in contrast to 0.65% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in KERN with 2.56% of the stake, The Vanguard Group, Inc. holds 113,593 shares worth 113,593. A second-largest stockholder of KERN, Perkins Capital Management, Inc., holds 96,150 shares, controlling over 2.17% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in KERN, holding 51,119 shares or 1.15% stake. With a 0.34% stake in KERN, the Vanguard Extended Market Index Fu is the largest stakeholder. A total of 15,169 shares are owned by the mutual fund manager. The Amplify Seymour Cannabis ETF, which owns about 0.29% of KERN stock, is the second-largest Mutual Fund holder. It holds 13,010 shares valued at 8977.0. iShares Core S&P Total US Stock M holds 0.01% of the stake in KERN, owning 605 shares worth 417.0.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Sep 29, 2022, KERN reported revenue of $6.09M and operating income of -$5.10M. The EBITDA in the recently reported quarter was $20.97M and diluted EPS was -$16.60.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KERN since 1 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 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 KERN analysts setting a high price target of $1.50 and a low target of $1.50, the average target price over the next 12 months is $1.50. Based on these targets, KERN could drop -2.6% to reach the target high and fall by -2.6% to reach the target low. Reaching the average price target will result in a decline of -2.6% 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. KERN will report FY 2022 earnings on 03/19/2024. Analysts have provided yearly estimates in a range of -$3.03 being high and -$3.03 being low. For KERN, this leads to a yearly average estimate of -$3.03. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Akerna Corp. surprised analysts by $0.51 when it reported -$0.59 EPS against a consensus estimate of -$1.10. The surprise factor in the prior quarter was -$14.00. Based on analyst estimates, the high estimate for the next quarter is -$0.71 and the low estimate is -$0.71. The average estimate for the next quarter is thus -$0.71.

Summary of Insider Activity:

Insiders traded KERN stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has remained unchanged to 0 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 0 while 0 shares were sold.

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