Fidelity Management & Research Co.. recently announced the acquisition of new stake in SmileDirectClub Inc. (NASDAQ:SDC). The institutional investor has increased its shareholding in the Healthcare company by 6.20% to 7.25 million shares with purchase of 0.42 million shares. This fresh investment now brings its stake to 6.67% valued currently at $61.25 million. In addition, The Vanguard Group, Inc. raised its holdings by 1.96 million to 6.83 million shares.
With over 8.66 million SmileDirectClub Inc. (SDC) shares trading Monday and a closing price of $8.12 on the day, the dollar volume was approximately $70.31 million. The shares have shown a positive weekly performance of 8.12% and its price on 08/31/20 gained nearly 7.69%. Currently, there are 109.05M common shares owned by the public and among those 83.29M 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: 13 analysts who have offered their price forecasts for SDC have a consensus price objective of $10.08. The analysts have set the share’s price value over the next 12 months at a high of $15.00 and a low of $5.00 should the stock experience a downside. Incidentally, analysts’ outlook for the SmileDirectClub Inc. stock is 2.40 for the next 12 months. The average price target is 19.44% above its last price level and an upside to the estimated low will see the stock lose -62.4% over that period. But an upside of 45.87% will see the stock hit the forecast high price target while mean target price for the stock is $10.50.
Insiders at the company have transacted a total of 15 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 13 of these insider trades were purchases, accounting for 310,645 shares. Insider sales of the common stock occurred on 2 occasions, with total insider shares sold totaling 2,285,857 shares.
The top 3 mutual fund holders in SmileDirectClub Inc. are Fidelity Advisor Series I -Growth, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. Fidelity Advisor Series I -Growth owns 5.57 million shares of the company’s stock, all valued at over $47.07 million. The company bought an additional 0.55 million shares recently to bring their total holdings to about 5.13% of the shares outstanding. Vanguard Total Stock Market Index bought 742.0 shares to see its total holdings expand to 2.36 million shares valued at over $19.97 million and representing 2.18% of the shares outstanding. Vanguard Small Cap Index Fund sold 12040.0 shares to bring its total holdings to over 2.03 million shares at a value of $17.16 million. Vanguard Small Cap Index Fund now owns shares totaling to 1.87% of the shares outstanding.
Shares of SmileDirectClub Inc. (NASDAQ: SDC) opened at $7.68, up $0.14 from a prior closing price of $7.54. However, the script later closed the day at $8.12, up 7.69%. The company’s stock has a 5-day price change of 8.12% and -2.52% over the past three months. It has a 12-month low price of $3.64 and touched a high of $21.10 over the same period. Currently, 8.66 million shares have been traded, compared to an average intraday trading volume of 4.84 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 -0.51%, -1.31%, and -2.95% respectively.
Institutional ownership of SmileDirectClub Inc. (NASDAQ: SDC) shares accounts for 68.90% of the company’s 109.05M shares outstanding. Mutual fund holders own 18.58%, while other institutional holders and individual stakeholders account for 21.63% and 0.88% respectively.
It has a market capitalization of $3.15B. The earnings-per-share (ttm) stands at -$0.62. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.37% over the week and 5.92% over the month.
Analysts forecast that SmileDirectClub Inc. (SDC) will achieve an EPS of -$0.16 for the current quarter, -$0.11 for the next quarter and -$0.34 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.23 while analysts give the company a high EPS estimate of -$0.1. Comparatively, EPS for the current quarter was -$0.89 a year ago. Earnings per share for the fiscal year are expected to decrease by -54.70%, and 54.10% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate SmileDirectClub Inc. (SDC) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 2 of the 13 advise that investors “hold,” and 2 rated it as a “Sell.”
Looking at the support for the SDC, a number of firms have released research notes about the stock. Stifel stated their Buy rating for the stock in a research note on July 13, 2020, with the firm’s price target at $9-$11. Stephens coverage for the SmileDirectClub Inc. (SDC) stock in a research note released on June 25, 2020 offered a Overweight rating with a price target of $11. BofA/Merrill was of a view on May 14, 2020 that the stock is Underperform, while Goldman gave the stock Sell rating on April 07, 2020, issuing a price target of $9- $3. UBS on their part issued Neutral rating on March 02, 2020.