Susquehanna has recently reduced Stem Inc (STEM) stock to Neutral rating, as announced on August 9, 2024, according to Finviz. Earlier, on August 7, 2024, TD Cowen had reduced the stock from a Buy to Hold, setting a price target of $1 for STEM stock. Goldman also reduced Neutral rating with a price target of $2.50. Additionally, TD Cowen reiterated Outperform rating on February 29, 2024, with a target price of $5. Guggenheim analysts, in their report published on November 3, 2023, also reduced Neutral rating for Stem Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Stem Inc (STEM) Stock Trading Recap
On Friday, Stem Inc (STEM) stock saw a decline, ending the day at $0.4 which represents a decrease of $-0.03 or -6.98% from the prior close of $0.43. The stock opened at $0.43 and touched a low of $0.39 during the day, reaching a high of $0.44. The volume of shares traded was 4.59 million falling short of the average volume of 6.50 million.
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STEM Stock Performance and Moving Averages
In recent trading, Stem Inc (STEM) stock price has shown some volatility, fluctuating 10.71% over the last five trades and -17.32% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -70.07%, and it has plunged by -31.73% in the previous three months. Currently, STEM is trading at 4.02%, -7.22%, and -65.59% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, STEM, a Utilities sector stock, is trading -90.74% below its 52-week high but remains 31.34% above its 52-week low. The Average True Range (ATR) (14 days) of 0.05 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Stem Inc’s Profitability and Valuation Ratios
Stem Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of -63.21% and a profit margin of -328.11%, with a gross margin of -70.07%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Stem Inc’s market capitalization stands at $64.80 million. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. Additionally, the Price-to-Sales Ratio is 0.25, reflecting the market’s valuation of the company’s sales.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 6.91% of Stem Inc (STEM)’s shares, while financial institutions hold 36.77%.
Notable insider trades include Carrington John Eugene, CEO and Director at Stem Inc (STEM), who sold 194171 shares on May 02 ’24, at $1.85 each, totaling $0.36 million. On Mar 19 ’24, Schaefer Robert, President, Transformational, sold 100000 shares for $1.82 each, amounting to $0.18 million. Additionally, on Mar 08 ’24, Carrington John Eugene sold 85038 shares at $2.19 each, generating $0.19 million.
