Alto Ingredients Inc. (NASDAQ: ALTO) stock jumped 3.78% on Friday to $4.39 against a previous-day closing price of $4.23. With 1.76 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.49 million shares. During the session, the Specialty Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $4.4600 whereas the lowest price it dropped to was $4.1800. The 52-week range on ALTO shows that it touched its highest point at $4.45 and its lowest point at $1.20 during that stretch. It currently has a 1-year price target of $6.50. Beta for the stock currently stands at 2.55.
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 ALTO was up-trending over the past week, with a rise of 17.69%, but this was up by 17.07% over a month. Three-month performance surged to 74.21% while six-month performance rose 141.21%. The stock gained 11.99% in the past year, while it has gained 52.43% so far this year. A look at the trailing 12-month EPS for ALTO yields -0.94 with Next year EPS estimates of 0.31. For the next quarter, that number is 0.10. This implies an EPS growth rate of -197.30% for this year and 148.00% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 7.00%.
Float and Shares Shorts:
At present, 73.39 million ALTO shares are outstanding with a float of 71.46 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.94 million, which was 2.55% higher than short shares on Jul 30, 2023. In addition to Mr. Bryon T. McGregor as the firm’s CEO & Pres, Mr. Michael D. Kandris serves as its Interim COO & Director.
Through their ownership of 49.26% of ALTO’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.87% of ALTO, in contrast to 21.79% held by mutual funds. Shares owned by individuals account for 14.72%. As the largest shareholder in ALTO with 4.92% of the stake, The Vanguard Group, Inc. holds 3,735,230 shares worth 3,735,230. A second-largest stockholder of ALTO, Charles Schwab Investment Managem, holds 1,870,496 shares, controlling over 2.46% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in ALTO, holding 1,684,460 shares or 2.22% stake. With a 3.50% stake in ALTO, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,655,238 shares are owned by the mutual fund manager. The Schwab Fundamental US Small Compa, which owns about 1.97% of ALTO stock, is the second-largest Mutual Fund holder. It holds 1,496,398 shares valued at 5.4 million. Vanguard Extended Market Index Fu holds 1.26% of the stake in ALTO, owning 954,700 shares worth 3.45 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, ALTO reported revenue of $362.19M and operating income of $22.50M. The EBITDA in the recently reported quarter was $22.43M and diluted EPS was $0.29.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ALTO 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 ALTO analysts setting a high price target of $7.00 and a low target of $6.00, the average target price over the next 12 months is $6.50. Based on these targets, ALTO could surge 59.45% to reach the target high and rise by 36.67% to reach the target low. Reaching the average price target will result in a growth of 48.06% 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 ALTO stock several times over the past three months with 4 Buys and 0 Sells. In these transactions, 238,750 shares were bought while 0 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 1,018,976 while 0 shares were sold.