What is SMART Global Holdings Inc. (SGH) Stock Return on Shareholders’ Capital?

SMART Global Holdings Inc. (NASDAQ: SGH) stock fell -2.38% on Tuesday to $16.83 against a previous-day closing price of $17.24. With 0.84 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.61 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $17.14 whereas the lowest price it dropped to was $16.76. The 52-week range on SGH shows that it touched its highest point at $29.38 and its lowest point at $12.04 during that stretch. It currently has a 1-year price target of $24.50. Beta for the stock currently stands at 1.33.

Will You Miss Out On This Growth Stock Boom?

A new megatrend in the fintech market is well underway. Mobile payments are projected to boom into a massive $12 trillion market by 2028. According to Motley Fool this growth stock could "deliver huge returns." Not only in the immediate future but also over the next decade. Especially since the man behind this company is a serial entrepreneur who has been wildly successful over the years.

And this is just one of our 5 Best Growth Stocks To Own For 2023.


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 SGH was up-trending over the past week, with a rise of 0.78%, but this was up by 3.25% over a month. Three-month performance surged to 24.76% while six-month performance fell -7.07%. The stock lost -40.18% in the past year, while it has gained 13.10% so far this year. A look at the trailing 12-month EPS for SGH yields 0.98 with Next year EPS estimates of 2.58. For the next quarter, that number is 0.60. This implies an EPS growth rate of 195.90% for this year and 15.57% for next year. EPS is expected to decline by -7.04% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 47.40%.

Float and Shares Shorts:

At present, 48.96 million SGH shares are outstanding with a float of 46.76 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.2 million, which was 8.65% higher than short shares on Sep 14, 2022. In addition to Mr. Mark W. Adams as the firm’s Pres, CEO & Director, Mr. Ken Rizvi serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 108.60% of SGH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.38% of SGH, in contrast to 45.61% held by mutual funds. Shares owned by individuals account for 10.02%. As the largest shareholder in SGH with 14.93% of the stake, BlackRock Fund Advisors holds 7,258,959 shares worth 7,258,959. A second-largest stockholder of SGH, Columbia Management Investment Ad, holds 5,970,709 shares, controlling over 12.28% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SGH, holding 4,418,469 shares or 9.09% stake. With a 7.40% stake in SGH, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 3,596,825 shares are owned by the mutual fund manager. The Columbia Seligman Technology & In, which owns about 6.10% of SGH stock, is the second-largest Mutual Fund holder. It holds 2,963,996 shares valued at 44.1 million. Vanguard Total Stock Market Index holds 2.90% of the stake in SGH, owning 1,409,909 shares worth 20.98 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SGH since 6 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 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 SGH analysts setting a high price target of $35.00 and a low target of $19.00, the average target price over the next 12 months is $24.50. Based on these targets, SGH could surge 107.96% to reach the target high and rise by 12.89% to reach the target low. Reaching the average price target will result in a growth of 45.57% 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. SGH will report FY 2023 earnings on 10/05/2023. Analysts have provided yearly estimates in a range of $2.36 being high and $1.91 being low. For SGH, this leads to a yearly average estimate of $2.23. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. SMART Global Holdings Inc. surprised analysts by $0.20 when it reported $0.79 EPS against a consensus estimate of $0.59. The surprise factor in the prior quarter was $0.15. Based on analyst estimates, the high estimate for the next quarter is $0.61 and the low estimate is $0.59. The average estimate for the next quarter is thus $0.60.

Summary of Insider Activity:

Insiders traded SGH stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 8,426 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 227,467 while 271,182 shares were sold.

Leave a Comment

Your email address will not be published. Required fields are marked *