Shares of Avon Products, Inc. (NYSE:AVP) recorded 5.49% gain during trading session on February 8th, 2019. The script traded as low as $2.425 and last traded at $2.50. 7.64 million shares changed exchanged hands during trading, a drop of -47.18% from the 30-day average session volume of 5.19M shares. The firm had previously closed at $2.37. The company has $442.30M outstanding shares, a price-to-earnings ratio of 9.40, price-to-earnings-growth ratio of 0.19 and a beta of 2.12. The company has a RSI of 66.03, ATR of 0.17 and a volatility of 8.57% this week. AVP has a 52 week low price of $1.30 and a 52 week high price of $2.99.
Investors have identified the tech company Avon Products, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 1.11B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Avon Products, Inc. (AVP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For AVP, the company has in raw cash 452.6 million on their books with 105.2 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 0 total, with 2.32 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
AVP were able to record 139.3 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 428.9 million. In cash movements, the company had a total of 68.3 million as operating cash flow.
Potential earnings growth for Avon Products, Inc. (AVP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Avon Products, Inc. recorded a total of 1.42 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.00% coming in sequential stages and their sales for the third quarter increasing by 0.05%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 538.4 million trying to sell their products during the last quarter, with the result yielding a gross income of 885.8 million. This allows shareholders to hold on to 442.30M with the revenue now reading 210 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.00 cents a share).
Is the stock of AVP attractive?
Having a look at the company’s valuation, the company is expected to record 0.12 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AVP sounds very interesting.
In related news, Director MITAROTONDA JAMES A bought 100,000 shares of the company’s stock in a transaction that recorded on August 13th, 2019. The purchase was performed at an average price of 1.69, for a total value of 169,090. As the purchase deal closes, the Director MITAROTONDA JAMES A now bought 500,000 shares of the company’s stock, valued at 909,650. Also, Director MITAROTONDA JAMES A bought 142,141 shares of the company’s stock in a deal that was recorded on May 22nd, 2019. The shares were bought at an average cost of 1.90 per share, with a total market value of 3,457,075. Following this completion of disposal, the Director now holds 89,933 shares of the company’s stock, valued at 171,592. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.44%.
2 out of 10 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Avon Products, Inc. stock. 0 analysts has assigned a Sell rating on the AVP stock. The 12-month mean consensus price target for the company’s shares has been set at $2.34.