An analyst sees good growth prospects for Planet Labs PBC (PL)

Planet Labs PBC (NYSE: PL) stock fell -2.26% on Tuesday to $4.76 against a previous-day closing price of $4.87. With 1.04 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.65 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $4.8200 whereas the lowest price it dropped to was $4.6900. The 52-week range on PL shows that it touched its highest point at $7.51 and its lowest point at $3.70 during that stretch. It currently has a 1-year price target of $9.38.

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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 PL was down-trending over the past week, with a drop of -5.56%, but this was down by -1.45% over a month. Three-month performance dropped to -0.21% while six-month performance fell -3.45%. The stock lost -20.80% in the past year, while it has gained 9.43% so far this year. A look at the trailing 12-month EPS for PL yields -0.65 with Next year EPS estimates of -0.52. For the next quarter, that number is -0.17. This implies an EPS growth rate of -14.90% for this year and 16.10% for next year.

Float and Shares Shorts:

At present, 267.95 million PL shares are outstanding with a float of 241.19 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.38 million, which was 3.48% higher than short shares on Sep 14, 2022. In addition to Mr. William Spencer Marshall as the firm’s Co-Founder, CEO & Chairman, Mr. Robert Henry Schingler Jr. serves as its Co-Founder, Chief Strategy Officer & Director.

Institutional Ownership:

Through their ownership of 39.46% of PL’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 18.55% of PL, in contrast to 11.62% held by mutual funds. Shares owned by individuals account for 0.66%. As the largest shareholder in PL with 6.58% of the stake, The Vanguard Group, Inc. holds 16,501,529 shares worth 16,501,529. A second-largest stockholder of PL, BlackRock Fund Advisors, holds 9,148,420 shares, controlling over 3.65% of the firm’s shares. Canada Pension Plan Investment Bo is the third largest shareholder in PL, holding 7,800,000 shares or 3.11% stake. With a 3.11% stake in PL, the Canada Pension Plan is the largest stakeholder. A total of 7,800,000 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.27% of PL stock, is the second-largest Mutual Fund holder. It holds 5,705,087 shares valued at 24.82 million. Vanguard Small Cap Index Fund holds 1.92% of the stake in PL, owning 4,809,708 shares worth 20.92 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PL since 9 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 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 PL analysts setting a high price target of $12.00 and a low target of $6.00, the average target price over the next 12 months is $9.00. Based on these targets, PL could surge 152.1% to reach the target high and rise by 26.05% to reach the target low. Reaching the average price target will result in a growth of 89.08% 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. PL will report FY 2023 earnings on 03/30/2023. Analysts have provided yearly estimates in a range of -$0.33 being high and -$0.54 being low. For PL, this leads to a yearly average estimate of -$0.40. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Planet Labs PBC surprised analysts by $0.05 when it reported -$0.08 EPS against a consensus estimate of -$0.13. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is -$0.07 and the low estimate is -$0.12. The average estimate for the next quarter is thus -$0.10.

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