Smartsheet Inc. (NYSE: SMAR): Hunting Genuine Value In Market Debris

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Capital Research & Management Co. recently announced the acquisition of new stake in Smartsheet Inc. (NYSE:SMAR). The institutional investor has increased its shareholding in the Technology company by 5.73% to 14.36 million shares with purchase of 0.78 million shares. This fresh investment now brings its stake to 12.04% valued currently at $731.35 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.14 million to 8.92 million shares. And Whale Rock Capital Management LLC has lifted its position by 0.33% or 18182.0 shares – to 5.61 million shares.

With over 1.56 million Smartsheet Inc. (SMAR) shares trading Wednesday and a closing price of $48.00 on the day, the dollar volume was approximately $74.66 million. The shares have shown a negative weekly performance of -3.34% and its price on 07/28/20 gained nearly 2.52%. Currently, there are 118.87M common shares owned by the public and among those 111.83M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for SMAR have a consensus price objective of $53.00. The analysts have set the share’s price value over the next 12 months at a high of $67.00 and a low of $45.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Smartsheet Inc. stock is 2.10 for the next 12 months. The average price target is 9.19% above its last price level and an upside to the estimated low will see the stock lose -6.67% over that period. But an upside of 28.36% will see the stock hit the forecast high price target while mean target price for the stock is $51.00.

Insiders at the company have transacted a total of 425 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 131 of these insider trades were purchases, accounting for 30,222,363 shares. Insider sales of the common stock occurred on 294 occasions, with total insider shares sold totaling 11,195,881 shares.

The top 3 mutual fund holders in Smartsheet Inc. are American Funds New Perspective Fu, American Funds Small Cap World Fu, and Vanguard Total Stock Market Index. American Funds New Perspective Fu owns 7.12 million shares of the company’s stock, all valued at over $362.45 million. The company bought an additional 1.04 million shares recently to bring their total holdings to about 5.97% of the shares outstanding. American Funds Small Cap World Fu sold -0.16 million shares to see its total holdings shrink to 5.83 million shares valued at over $296.98 million and representing 4.89% of the shares outstanding. Vanguard Total Stock Market Index bought 0.22 million shares to bring its total holdings to over 3.07 million shares at a value of $156.39 million. Vanguard Total Stock Market Index now owns shares totaling to 2.58% of the shares outstanding.

Shares of Smartsheet Inc. (NYSE: SMAR) opened at $47.57, up $0.75 from a prior closing price of $46.82. However, the script later closed the day at $48.00, up 2.52%. The company’s stock has a 5-day price change of -3.34% and -9.75% over the past three months. SMAR shares are trading 4.23% year to date (YTD), with the 12-month market performance down to -9.09% lower. It has a 12-month low price of $30.91 and touched a high of $60.45 over the same period. Currently, 1.56 million shares have been traded, compared to an average intraday trading volume of 2.13 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.08%, -5.44%, and 3.37% respectively.

Institutional ownership of Smartsheet Inc. (NYSE: SMAR) shares accounts for 91.80% of the company’s 118.87M shares outstanding. Mutual fund holders own 45.62%, while other institutional holders and individual stakeholders account for 6.88% and 44.13% respectively.

It has a market capitalization of $5.59B. The earnings-per-share (ttm) stands at -$0.89. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.92% over the week and 4.88% over the month.

Analysts forecast that Smartsheet Inc. (SMAR) will achieve an EPS of -$0.16 for the current quarter, -$0.13 for the next quarter and -$0.43 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.18 while analysts give the company a high EPS estimate of -$0.09. Comparatively, EPS for the current quarter was -$0.08 a year ago. Earnings per share for the fiscal year are expected to decrease by -31.00%, and 14.00% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Smartsheet Inc. (SMAR) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 6 of the 17 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the SMAR, a number of firms have released research notes about the stock. KeyBanc Capital Markets stated their Overweight rating for the stock in a research note on July 27, 2020, with the firm’s price target at $60. Wells Fargo coverage for the Smartsheet Inc. (SMAR) stock in a research note released on June 23, 2020 offered a Equal Weight rating with a price target of $50. Citigroup was of a view on May 15, 2020 that the stock is Neutral, while Jefferies gave the stock Hold rating on May 14, 2020, issuing a price target of $49- $55. JP Morgan on their part issued Neutral rating on April 23, 2020.

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