Slack Technologies Inc. (NYSE: WORK): Reassessing Prospects

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Morgan Stanley Investment Managem.. has recently announced that it has increased stake in Slack Technologies Inc. (NYSE:WORK) by 9.08%. After grabbing 61.44 million shares, the institutional investor is now in possession of 5.11 million shares of the Technology Company. The new investment brought the stake of investor firm to 14.20% having worth around $1.82 billion. Moreover, T. Rowe Price Associates, Inc. (I.. increased its share by 9.64 million to have a control over 50.2 million shares. And The Vanguard Group, Inc. raised its holdings to 14.01 million shares by acquiring 31.76 million shares or 7.34% of the stake.

Slack Technologies Inc. (WORK) concluded trading on 08/27/20 at a closing price of $30.85, with 12.67 million shares of worth about $390.73 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 2.90% during that period and on Thursday the price saw a gain of about 2.05%. Currently the company’s common shares owned by public are about 557.41M shares, out of which, 426.91M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 26 analysts are covering the WORK stock and their offered price forecasts bring an average price target of $34.70. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $45.00 and could fall to a lowest price of $20.00. Analysts also issued an outlook of 2.40 for the Slack Technologies Inc. stock for next 12 months. The stock’s current price level is 10.03% above of average price target set by the analysts, while a rise to estimated low would result in loss of -54.25 for the stock. However, touching the estimated high of $45.00 would mean a gain of 31.44% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 831 times over the past 12 months. They bought 217,194,590 shares in 125 of the transactions. In 706 selling transactions, insiders dumped 295,282,111 shares.

Morgan Stanley Instl. Fund-Growth, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund are the top 3 mutual funds which are holding stakes in Slack Technologies Inc. Morgan Stanley Instl. Fund-Growth is currently holding 13.69 million shares of worth totaling $404.43 million. The company recently came buying 2.49 million shares which brought its stake up to 3.16% of the company’s outstanding shares. Vanguard Total Stock Market Index sold 27637.0 shares, after which its hold over company’s outstanding shares shrunk to 2.66%, leaving 11.51 million shares with the mutual fund that have a worth of about $340.05 million. Vanguard Mid Cap Index Fund, after selling 9.91 million shares, have now control over 2.29% of the stake in the company. It holds 83424.0 shares of worth $292.92 million.

Slack Technologies Inc. (NYSE: WORK) started trading at $30.53, above $0.3 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $30.85, or with a gain of 2.05%. Stock saw a price change of 2.90% in past 5 days and over the past one month there was a price change of 7.87%. Year-to-date (YTD), WORK shares are showing a performance of 37.23% which increased to 3.52% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $15.10 but also hit the highest price of $40.07 during that period. While comparing its average daily trading volume of 19.22 million shares, we see that about 12.67 million changed hands on the day. The stock is currently trading 6.39% above its 20-day simple moving average (SMA20), while that difference is up 0.26% for SMA50 and it goes to 15.04% higher than SMA200.

Morgan Stanley Investment Managem.. acquired 61.44 million shares of Slack Technologies Inc. having value of about $1.82 billion. Data submitted at the U.S SEC by Morgan Stanley Investment Managem.. revealed that the firm now holds 5.11 million shares in the company valued at close to $157724789.75, or have control over 9.08% stake in the company. Slack Technologies Inc. (NYSE: WORK) currently have 557.41M outstanding shares and institutions hold larger chunk of about 85.20% of that. Holding of mutual funds in the company is about 31.86% while other institutional holders and individual stake holders have control over 52.96% and 3.95% of the stake respectively.

The stock has a current market capitalization of $17.93B. It has posted earnings per share of -$1.12 in the same period. It has Quick Ratio of 3.30 while making debt-to-equity ratio of 0.75. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for WORK, volatility over the week remained 4.79% while standing at 4.00% over the month.

Analysts are in expectations that Slack Technologies Inc. (WORK) stock would likely to be making an EPS of -$0.03 in the current quarter, while forecast for next quarter ESPS is -$0.05 and it is -$0.1 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.04 which is -$0.02 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of -$0.14 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -268.80% while it is estimated to increase by 37.50% in next year.

Analysts at 26 brokerage firms have issued recommendations for the Slack Technologies Inc. (WORK)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.40. Out of those 26 Wall Street analysts, 11 recommended a “Buy” rating, while 9 were in favor recommending the stock as a “Hold” and 3 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Wolfe Research on July 24, 2020 offering a Peer perform rating for the stock and assigned a target price of to it. Coverage by FBN Securities stated Slack Technologies Inc. (WORK) stock as an Outperform in their note to investors on July 17, 2020, suggesting a price target of $45 for the stock. On June 19, 2020, Goldman Downgrade their recommendations, while on June 05, 2020, Monness Crespi & Hardt Downgrade their ratings for the stock with a price target of. Stock get an Outperform rating from Cowen on June 02, 2020.

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