Adversity is less terrifying than hope: Silk Road Medical Inc (SILK)

Silk Road Medical Inc (NASDAQ: SILK) stock fell -1.40% on Friday to $16.92 against a previous-day closing price of $17.16. With 1.11 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.89 million shares. The 52-week range on SILK shows that it touched its highest point at $58.04 and its lowest point at $17.12 during that stretch. It currently has a 1-year price target of $33.67. Beta for the stock currently stands at 1.17.

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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 SILK was down-trending over the past week, with a drop of -9.03%, but this was down by -16.24% over a month. Three-month performance dropped to -48.57% while six-month performance fell -61.23%. The stock lost -60.61% in the past year, while it has lost -67.98% so far this year. A look at the trailing 12-month EPS for SILK yields -1.40 with Next year EPS estimates of -1.33. For the next quarter, that number is -0.34. This implies an EPS growth rate of -6.90% for this year and 8.90% for next year. EPS is expected to grow by 16.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -19.10%.

Float and Shares Shorts:

At present, 38.77 million SILK shares are outstanding with a float of 37.92 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.53 million, which was 3.94% higher than short shares on Jul 30, 2023. In addition to Ms. Erica J. Rogers as the firm’s Pres, CEO & Director, Mr. Lucas W. Buchanan serves as its CFO & COO.

Institutional Ownership:

Through their ownership of 115.79% of SILK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.98% of SILK, in contrast to 44.18% held by mutual funds. Shares owned by individuals account for 29.34%. As the largest shareholder in SILK with 13.51% of the stake, Wasatch Advisors, Inc. holds 5,246,961 shares worth 5,246,961. A second-largest stockholder of SILK, The Vanguard Group, Inc., holds 3,470,705 shares, controlling over 8.94% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in SILK, holding 2,966,730 shares or 7.64% stake. With a 7.64% stake in SILK, the American Funds Small Cap World Fu is the largest stakeholder. A total of 2,966,730 shares are owned by the mutual fund manager. The ClearBridge Small Cap Growth Fund, which owns about 3.48% of SILK stock, is the second-largest Mutual Fund holder. It holds 1,349,704 shares valued at 26.08 million. Vanguard Total Stock Market ETF holds 2.88% of the stake in SILK, owning 1,118,088 shares worth 21.6 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 Jun 29, 2023, SILK reported revenue of $33.17M and operating income of -$14.19M. The EBITDA in the recently reported quarter was -$14.12M and diluted EPS was -$0.44.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SILK 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 SILK analysts setting a high price target of $54.00 and a low target of $13.00, the average target price over the next 12 months is $32.70. Based on these targets, SILK could surge 219.15% to reach the target high and fall by -23.17% to reach the target low. Reaching the average price target will result in a growth of 93.26% 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 SILK stock several times over the past three months with 11 Buys and 4 Sells. In these transactions, 45,480 shares were bought while 9,195 shares were sold. The number of buy transactions has increased to 53 while that of sell transactions has risen to 50 over the past year. The total number of shares bought during that period was 430,415 while 389,686 shares were sold.

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