Olo Inc. (NYSE: OLO) stock fell -1.03% on Tuesday to $7.69 against a previous-day closing price of $7.77. With 0.8 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.4 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $7.93 whereas the lowest price it dropped to was $7.59. The 52-week range on OLO shows that it touched its highest point at $19.30 and its lowest point at $5.74 during that stretch. It currently has a 1-year price target of $9.75.
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 OLO was up-trending over the past week, with a rise of 5.78%, but this was up by 20.53% over a month. Three-month performance dropped to -4.59% while six-month performance fell -34.83%. The stock lost -49.04% in the past year, while it has gained 23.04% so far this year. A look at the trailing 12-month EPS for OLO yields -0.25 with Next year EPS estimates of 0.08. For the next quarter, that number is 0.02. This implies an EPS growth rate of -50.00% for this year and 28.57% for next year.
Float and Shares Shorts:
At present, 162.37 million OLO shares are outstanding with a float of 102.48 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.22 million, which was 6.32% higher than short shares on Sep 14, 2022. In addition to Mr. Noah Herbert Glass as the firm’s Founder, CEO & Director, Mr. Peter J. Benevides serves as its Chief Financial Officer.
Through their ownership of 99.76% of OLO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.20% of OLO, in contrast to 45.01% held by mutual funds. Shares owned by individuals account for 3.86%. As the largest shareholder in OLO with 12.29% of the stake, Brown Capital Management LLC holds 13,024,633 shares worth 13,024,633. A second-largest stockholder of OLO, Kayne Anderson Rudnick Investment, holds 12,115,469 shares, controlling over 11.44% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in OLO, holding 9,668,780 shares or 9.13% stake. With a 6.60% stake in OLO, the Brown Capital Management – Small is the largest stakeholder. A total of 6,989,481 shares are owned by the mutual fund manager. The Virtus KAR Small Cap Growth Fund, which owns about 3.94% of OLO stock, is the second-largest Mutual Fund holder. It holds 4,176,802 shares valued at 26.11 million. Hartford Mid Cap Fund holds 3.68% of the stake in OLO, owning 3,893,639 shares worth 24.34 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OLO since 7 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 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 OLO analysts setting a high price target of $12.00 and a low target of $8.50, the average target price over the next 12 months is $9.75. Based on these targets, OLO could surge 56.05% to reach the target high and rise by 10.53% to reach the target low. Reaching the average price target will result in a growth of 26.79% 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. OLO will report FY 2022 earnings on 02/22/2024. Analysts have provided yearly estimates in a range of $0.07 being high and $0.05 being low. For OLO, this leads to a yearly average estimate of $0.06. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Olo Inc. surprised analysts by $0.01 when it reported $0.02 EPS against a consensus estimate of $0.01. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.03 and the low estimate is $0.01. The average estimate for the next quarter is thus $0.02.
Summary of Insider Activity:
Insiders traded OLO stock several times over the past three months with 6 Buys and 5 Sells. In these transactions, 94,202 shares were bought while 142,069 shares were sold. The number of buy transactions has increased to 38 while that of sell transactions has risen to 29 over the past year. The total number of shares bought during that period was 1,685,110 while 1,026,274 shares were sold.