Smartsheet Inc. (NYSE: SMAR) stock fell -1.57% on Tuesday to $42.70 against a previous-day closing price of $43.38. With 1.04 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.43 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $44.00 whereas the lowest price it dropped to was $42.56. The 52-week range on SMAR shows that it touched its highest point at $66.74 and its lowest point at $25.09 during that stretch. It currently has a 1-year price target of $46.91. Beta for the stock currently stands at 1.07.
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 SMAR was down-trending over the past week, with a drop of -1.45%, but this was up by 6.09% over a month. Three-month performance surged to 32.69% while six-month performance rose 40.51%. The stock lost -25.84% in the past year, while it has gained 8.49% so far this year. A look at the trailing 12-month EPS for SMAR yields -1.75 with Next year EPS estimates of -0.08. For the next quarter, that number is -0.01. This implies an EPS growth rate of -42.90% for this year and 74.20% for next year.
Float and Shares Shorts:
At present, 130.63 million SMAR shares are outstanding with a float of 126.81 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.53 million, which was 2.70% higher than short shares on Sep 14, 2022. In addition to Mr. Mark P. Mader as the firm’s Pres, CEO & Director, Mr. Brent R. Frei serves as its Co-Founder & Director.
Through their ownership of 91.71% of SMAR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.37% of SMAR, in contrast to 4.12% held by mutual funds. Shares owned by individuals account for 39.80%. As the largest shareholder in SMAR with 11.62% of the stake, Capital Research & Management Co holds 15,263,971 shares worth 15,263,971. A second-largest stockholder of SMAR, The Vanguard Group, Inc., holds 11,583,321 shares, controlling over 8.82% of the firm’s shares. Brown Capital Management LLC is the third largest shareholder in SMAR, holding 6,412,165 shares or 4.88% stake. With a 5.83% stake in SMAR, the American Funds Small Cap World Fu is the largest stakeholder. A total of 7,654,626 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 2.89% of SMAR stock, is the second-largest Mutual Fund holder. It holds 3,789,626 shares valued at 149.16 million. Vanguard Total Stock Market Index holds 2.88% of the stake in SMAR, owning 3,778,599 shares worth 148.73 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SMAR since 22 analysts follow the stock currently. There are 17 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 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 SMAR analysts setting a high price target of $57.00 and a low target of $36.00, the average target price over the next 12 months is $46.96. Based on these targets, SMAR could surge 33.49% to reach the target high and fall by -15.69% to reach the target low. Reaching the average price target will result in a growth of 9.98% 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. SMAR will report FY 2023 earnings on 03/15/2023. Analysts have provided yearly estimates in a range of -$0.26 being high and -$0.31 being low. For SMAR, this leads to a yearly average estimate of -$0.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Smartsheet Inc. surprised analysts by $0.14 when it reported -$0.01 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was $0.10. Based on analyst estimates, the high estimate for the next quarter is $0.04 and the low estimate is -$0.02. The average estimate for the next quarter is thus -$0.00.
Summary of Insider Activity:
Insiders traded SMAR stock several times over the past three months with 31 Buys and 13 Sells. In these transactions, 105,913 shares were bought while 49,534 shares were sold. The number of buy transactions has increased to 161 while that of sell transactions has risen to 80 over the past year. The total number of shares bought during that period was 521,346 while 230,075 shares were sold.