Are Smart Investors Making the Right Decision? BILL Holdings Inc. (BILL)

BILL Holdings Inc. (NYSE: BILL) stock fell -1.78% on Friday to $109.43 against a previous-day closing price of $111.41. With 1.5 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.55 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $111.30 whereas the lowest price it dropped to was $108.69. The 52-week range on BILL shows that it touched its highest point at $168.67 and its lowest point at $68.30 during that stretch. It currently has a 1-year price target of $132.74. Beta for the stock currently stands at 1.95.

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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 BILL was down-trending over the past week, with a drop of -5.68%, but this was up by 4.27% over a month. Three-month performance dropped to -4.40% while six-month performance rose 42.80%. The stock lost -32.91% in the past year, while it has gained 0.43% so far this year. A look at the trailing 12-month EPS for BILL yields -2.12 with Next year EPS estimates of 2.33. For the next quarter, that number is 0.49. This implies an EPS growth rate of 34.20% for this year and 19.37% for next year.

Float and Shares Shorts:

At present, 106.38 million BILL shares are outstanding with a float of 100.77 million shares on hand for trading. On Aug 30, 2023, short shares totaled 6.85 million, which was 6.43% higher than short shares on Jul 30, 2023. In addition to Mr. Rene A. Lacerte as the firm’s Founder, CEO & Chairperson of the Board, Mr. John R. Rettig serves as its Exec. VP of Fin. & Operations and CFO.

Institutional Ownership:

Through their ownership of 100.57% of BILL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.55% of BILL, in contrast to 48.76% held by mutual funds. Shares owned by individuals account for 12.07%. As the largest shareholder in BILL with 11.69% of the stake, T. Rowe Price Associates, Inc. holds 12,456,526 shares worth 12,456,526. A second-largest stockholder of BILL, Morgan Stanley Investment Managem, holds 10,367,464 shares, controlling over 9.73% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in BILL, holding 9,439,069 shares or 8.85% stake. With a 6.07% stake in BILL, the T Rowe Price New Horizons Fund is the largest stakeholder. A total of 6,473,451 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.95% of BILL stock, is the second-largest Mutual Fund holder. It holds 3,148,317 shares valued at 363.0 million. Vanguard Mid Cap Index Fund holds 2.19% of the stake in BILL, owning 2,339,461 shares worth 269.74 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, BILL reported revenue of $200.22M and operating income of -$83.36M. The EBITDA in the recently reported quarter was -$60.28M and diluted EPS was -$0.81.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BILL 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 BILL analysts setting a high price target of $200.00 and a low target of $90.00, the average target price over the next 12 months is $133.35. Based on these targets, BILL could surge 82.77% to reach the target high and fall by -17.76% to reach the target low. Reaching the average price target will result in a growth of 21.86% 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 BILL stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 1,213 shares were bought while 0 shares were sold. The number of buy transactions has increased to 74 while that of sell transactions has risen to 112 over the past year. The total number of shares bought during that period was 216,557 while 195,550 shares were sold.

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