Looking For Growth Signs for NortonLifeLock Inc. (NLOK)

On December 23, 2019, NortonLifeLock Inc. (NASDAQ:NLOK) shares gained 0.86% or 0.22 points to close at $25.73 with a thin trading volume of 6.159 million shares. The company now has a market cap of $16.4 billion and currently has 635.71 million outstanding shares. NortonLifeLock Inc. (NLOK) stock has accumulated 4.74 percent of market value in 21 trading days.

NLOK stock’s trailing 3-year beta is 1.31, 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 $0.16 share in the trailing 52 weeks. The stock’s value surged 36.17 percent year to date (YTD) compared to a rise of 39.53 percent in 52 week’s period. The firm’s shares are still trading -3.67 percent below its 1-year high of $26.71 and 47.66 percent up from 52-week low of $17.42. The average consensus ranking on the company is 3, 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 hold.

Past records have indicated that shares in NortonLifeLock Inc. rose on 2 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.

Let’s take a glimpse at some insider activity at NortonLifeLock Inc. (NASDAQ:NLOK) and observe the pattern. The earliest insider trade happened on 12/05/2019. Feld Peter A parted with a total of 16.66 million shares of the firm at average share price of $25.49. The total amount for the sale was set at $424.63 million. On completing this exchange, the Director account balance was 26.69 million shares. The stock grew 0.94 percent from that insider sale.

The stock is lingering around the initial support level of $25.54. After this, the following support is at the zone of $25.36. Up until the time the NLOK stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 59.2 on the daily chart, and this may be a cause for concern. In case the price goes below $25.36 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $25.85 level may cause a pull-back move approaching $25.98 mark.

NortonLifeLock Inc. (NLOK) shares are trading at a P/E ratio of 19.17 times earnings posted in the trailing 12 months. The industry NLOK deals with has an average P/E of 35.96. Its P/B ratio is standing at 2.49X compared to the 13.79 industry average. It is additionally sporting a 4 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.5. NortonLifeLock Inc. has a 79.6% gross profit margin, with its operating margin around 14%. Alongside this, the company’s net profit margin currently stands at 24.9%.