Are Investors Unfairly Punishing Guess’, Inc. (GES)?

    Shares of Guess’, Inc. (NYSE:GES) recorded 1.84% gain during trading session on August 21st, 2019. The script traded as low as $14.61 and last traded at $14.93. 1.8 million shares changed exchanged hands during trading, an increase of 13.17% from the 30-day average session volume of 2.07M shares. The firm had previously closed at $14.66. The company has $68.50M outstanding shares, a price-to-earnings ratio of 77.36, price-to-earnings-growth ratio of 0.39 and a beta of 0.60. The company has a RSI of 46.03, ATR of 0.74 and a volatility of 5.01% this week. GES has a 52 week low price of $13.34 and a 52 week high price of $26.95.

    Investors have identified the tech company Guess’, 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 1.02B, 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.

    Guess’, Inc. (GES) 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 GES, the company has in raw cash 112.93 million on their books with 172.81 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 717000 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.

    GES were able to record 114.37 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 97.54 million. In cash movements, the company had a total of 96.5 million as operating cash flow.

    Potential earnings growth for Guess’, Inc. (GES)

    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, Guess’, Inc. recorded a total of 536.69 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.03% coming in sequential stages and their sales for the third quarter reducing by -0.56%.

    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 354.74 million trying to sell their products during the last quarter, with the result yielding a gross income of 181.95 million. This allows shareholders to hold on to 68.50M with the revenue now reading -270 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.27 cents a share).

    Is the stock of GES attractive?

    Having a look at the company’s valuation, the company is expected to record 1.59 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 GES sounds very interesting.

    In related news, CEO and Director ALBERINI CARLOS bought 150,170 shares of the company’s stock in a transaction that recorded on June 13th, 2019. The purchase was performed at an average price of 14.10, for a total value of 2,117,397. As the purchase deal closes, the CEO and Director ALBERINI CARLOS now bought 197,183 shares of the company’s stock, valued at 2,857,182. Also, Director Bolla Gianluca bought 10,000 shares of the company’s stock in a deal that was recorded on June 12th, 2019. The shares were bought at an average cost of 14.73 per share, with a total market value of 85,552. Following this completion of disposal, the Director now holds 12,000 shares of the company’s stock, valued at 226,440. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.80%.

    1 out of 5 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Guess’, Inc. stock. 0 analysts has assigned a Sell rating on the GES stock. The 12-month mean consensus price target for the company’s shares has been set at $22.50.