Is There A Party City Holdco Inc. (PRTY) Big Rally On The Horizon?

On December 03, 2019, Party City Holdco Inc. (NYSE:PRTY) shares lost -2.13% or -0.04 points to close at $1.84 with a thin trading volume of 3.337 million shares. It opened the trading session at $1.84, the shares rose to $1.86 and dropped to $1.72, the range by which the price of stock traded the whole day. The company now has a market cap of $162 million and currently has 88.08 million outstanding shares. Party City Holdco Inc. (PRTY) stock has plunged -67.49 percent of market value in 21 trading days.

PRTY stock’s trailing 3-year beta is 1.08, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$1.82 share in the trailing 52 weeks. The stock’s value fallen -81.56 percent year to date (YTD) compared to a decline of -84.6 percent in 52 week’s period. The firm’s shares are still trading -85.13 percent below its 1-year high of $12.37 and 21.05 percent up from 52-week low of $1.52. The average consensus ranking on the company is 2.5, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Party City Holdco Inc. (PRTY) is most likely going to rise 150 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $8-month high price target. This represents a whopping 334.78 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $5, which means a return possibility of 171.74 percent in comparison with the closing price of the stock of $1.84 on December 03. The lowest price set for the stock is $2.5 — just above 35.87 percent from PRTY share price now.

Past records have indicated that shares in Party City Holdco Inc. rose on 11 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of PRTY’s Q4 earnings on March 05. Analysts are predicting revenue to suffer decline of -6.9 percent to $750M in the financial fourth quarter, while EPS will soar by about -18.52 percent to $0.88 per share. In the last quarter, it earnings of $0.01 per share came better than the $0.00573, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $805.63M, missing the $816.38M analysts had expected. Earnings are seen to rise by 19.2 percent this year, 27.41 percent in the coming year and the trend continues by 9.4 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Party City Holdco Inc. (NYSE:PRTY) and observe the pattern. The earliest insider trade happened on 11/11/2019. Creekmuir William S. gathered a total of 25.74 thousand shares of the firm at average share price of $2.32. The total amount for the purchase was set at $59.72 thousand. On completing this exchange, the Director account balance was 55.47 thousand shares. The stock lost -20.69 percent from that insider purchase. On 11/11/2019, MATTHEWS NORMAN S, Director, did a purchase of 212.5 thousand shares at a price of $2.32 per share. This increased 493 thousand shares to the insider’s fortune and the stock experienced a -20.69 percent retreat in price since the news became public. This exchange saw 406.99 thousand shares get into the Director account.

On 11/11/2019, CEO HARRISON JAMES M recorded a purchase transaction valued at $232 thousand. The purchase at $2.32 a share has added 100 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -20.69 percent decrease since the transaction reporting date. The company insider is left with 759.53 thousand shares remaining in the account. Correale Michael A., who works as CFO at the company, performed a purchase of 24.3 thousand shares in a transaction worth $100.36 thousand. The acquisition recorded on 08/15/2019 was priced at $4.13 per share. The stock price plunged -55.45 percent since the transaction. Correale Michael A. currently holds a stake of 114.48 thousand in PRTY stock which is worth $210.65 thousand after the insider buying.

The stock is lingering around the initial support level of $1.75. After this, the following support is at the zone of $1.67. Up until the time the PRTY stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 28.69 on the daily chart, and this may be a cause for comfort. In case the price goes below $1.67 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $1.89 level may cause a pull-back move approaching $1.95 mark.

The industry PRTY deals with has an average P/E of 25.9. Its P/B ratio is standing at 0.2X compared to the 6 industry average. It is additionally sporting a 0.1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.8. Party City Holdco Inc. has a 16.1% gross profit margin, with its operating margin around -1.3%. Alongside this, the company’s net profit margin currently stands at -6.8%.