Sovos Brands Inc. (NASDAQ: SOVO) stock jumped 6.49% on Wednesday to $18.70 against a previous-day closing price of $17.56. With 1.37 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.56 million shares. During the session, the Packaged Foods company that operates in wider Consumer Defensive sector, reached to the highest price of $18.78 whereas the lowest price it dropped to was $17.38. The 52-week range on SOVO shows that it touched its highest point at $20.58 and its lowest point at $12.50 during that stretch. It currently has a 1-year price target of $21.44.
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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 SOVO was up-trending over the past week, with a rise of 6.49%, but this was up by 11.18% over a month. Three-month performance surged to 37.50% while six-month performance rose 31.14%. The stock gained 34.15% in the past year, while it has gained 30.13% so far this year. A look at the trailing 12-month EPS for SOVO yields -0.49 with Next year EPS estimates of 0.76. For the next quarter, that number is 0.13. This implies an EPS growth rate of 5.00% for this year and 20.03% for next year.
Float and Shares Shorts:
At present, 101.19 million SOVO shares are outstanding with a float of 90.75 million shares on hand for trading. On Apr 27, 2023, short shares totaled 3.09 million, which was 3.05% higher than short shares on Mar 30, 2023. In addition to Mr. Todd R. Lachman as the firm’s Founder, Pres, CEO & Director, Mr. Kirk A. Jensen serves as its Chief Operating Officer.
Through their ownership of 94.39% of SOVO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.63% of SOVO, in contrast to 24.21% held by mutual funds. Shares owned by individuals account for 16.47%. As the largest shareholder in SOVO with 6.13% of the stake, Wellington Management Co. LLP holds 6,209,542 shares worth 6,209,542. A second-largest stockholder of SOVO, Capital Research & Management Co, holds 5,357,932 shares, controlling over 5.29% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SOVO, holding 3,646,753 shares or 3.60% stake. With a 5.29% stake in SOVO, the American Funds Small Cap World Fu is the largest stakeholder. A total of 5,357,932 shares are owned by the mutual fund manager. The Loomis Sayles Small Cap Growth Fu, which owns about 1.09% of SOVO stock, is the second-largest Mutual Fund holder. It holds 1,100,542 shares valued at 18.87 million. Vanguard Total Stock Market ETF holds 1.07% of the stake in SOVO, owning 1,083,568 shares worth 18.58 million.
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 Mar 31, 2023, SOVO reported revenue of $197.43M and operating income of $8.37M. The EBITDA in the recently reported quarter was $18.20M and diluted EPS was -$0.30.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SOVO since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With SOVO analysts setting a high price target of $24.00 and a low target of $19.00, the average target price over the next 12 months is $21.40. Based on these targets, SOVO could surge 28.34% to reach the target high and rise by 1.6% to reach the target low. Reaching the average price target will result in a growth of 14.44% 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.
Summary of Insider Activity:
Insiders traded SOVO stock several times over the past three months with 0 Buys and 17 Sells. In these transactions, 0 shares were bought while 496,156 shares were sold. The number of buy transactions has increased to 10 while that of sell transactions has risen to 54 over the past year. The total number of shares bought during that period was 135,792 while 59,629,886 shares were sold.