Why SmileDirectClub Inc. (SDC) Stock Could See Much Higher Prices Ahead

SmileDirectClub Inc. (NASDAQ: SDC) is -7.09% lower on its value in year-to-date trading and has touched a low of $3.64 and a high of $21.10 in the current 52-week trading range. The SDC stock was last observed hovering at around $7.54 in the last trading session, with the day’s gains setting it 0.58% off its average median price target of $10.50 for the next 12 months. It is also 45.87% off the consensus price target high of $15.00 offered by 13 analysts, but current levels are -62.4% lower than the price target low of $5.00 for the same period.

Currently trading at $8.12, the stock is -0.51% and -1.31% below its SMA20 and SMA50 respectively. However, with a daily trading volume of 8.66 million and changing 7.69% at the moment leaves the stock -2.95% off its SMA200. SDC registered a gain of 6.70% in past 6-months. The firm has a 50-day simple moving average (SMA 50) of $8.37 and a 200-day simple moving average (SMA200) of $7.39.

The stock witnessed a -3.91% loss in the last 1 month and extending the period to 3 months gives it a -2.52%, and is 8.12% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 5.37% over the week and 5.92% over the month.

SmileDirectClub Inc. (SDC) has around 5000 employees, a market worth around $3.15B and $680.60M in sales. Profit margin for the company is -25.10%. Distance from 52-week low is 123.08% and -61.52% from its 52-week high. The company has generated returns on investments over the last 12 months (-96.40%).

SmileDirectClub Inc. (SDC) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for SmileDirectClub Inc. (SDC) is a “Overweight”. 13 analysts offering their recommendations for the stock have an average rating of 2.40, where 2 rate it as a Hold and 0 think it is a “Overweight”. 8 of the analysts rate the stock as a “Buy”. 2 analysts have rated the stock as a Sell or Underperform.

SmileDirectClub Inc. is expected to release its quarterly report on 11/17/2020 and quarterly earnings per share for the current quarter are estimated at -$0.16 with sales reaching $147.83M over the same period.The EPS is expected to shrink by -54.70% this year, but quarterly earnings will post -16.10% year-over-year. Quarterly sales are estimated to shrink -10.60% in year-over-year returns.

SmileDirectClub Inc. (SDC) Top Institutional Holders

165 institutions hold shares in SmileDirectClub Inc. (SDC), with 302.24k shares held by insiders accounting for 0.27% while institutional investors hold 79.29% of the company’s shares. The shares outstanding are 109.05M, and float is at 83.29M with Short Float at 35.97%. Institutions hold 79.08% of the Float.

The top institutional shareholder in the company is Clayton, Dubilier & Rice, LLC with over 26.9 million shares valued at $212.53 million. The investor’s holdings represent 24.30% of the SDC Shares outstanding. As of Jun 29, 2020, the second largest holder is FMR, LLC with 7.25 million shares valued at $57.27 million to account for 6.55% of the shares outstanding. The other top investors are Vanguard Group, Inc. (The) which holds 6.9 million shares representing 6.23% and valued at over $54.48 million, while Blackrock Inc. holds 2.29% of the shares totaling 2.54 million with a market value of $20.07 million.

SmileDirectClub Inc. (SDC) Insider Activity

A total of 10 insider transactions have happened at SmileDirectClub Inc. (SDC) in the last six months, with sales accounting for 1 and purchases happening 9 times. The most recent transaction is an insider purchase by WALLMAN RICHARD F, the company’s Director. SEC filings show that WALLMAN RICHARD F bought 53,000 shares of the company’s common stock on Aug 14 at a price of $7.80 per share for a total of $0.41 million. Following the purchase, the insider now owns 0.12 million shares.

SmileDirectClub Inc. disclosed in a document filed with the SEC on May 12 that Oswald Kay (President of International) sold a total of 10,000 shares of the company’s common stock. The trade occurred on May 12 and was made at $10.04 per share for $0.1 million. Following the transaction, the insider now directly holds 0.14 million shares of the SDC stock.

Still, SEC filings show that on Mar 16, WALLMAN RICHARD F (Director) acquired 8,000 shares at an average price of $4.68 for $37439.0. The insider now directly holds 34,000 shares of SmileDirectClub Inc. (SDC).