Party City Holdco Inc. (NYSE:PRTY) Stock: The Math Behind The Indicators

The stock is lingering around the initial support level of $2.67. After this, the following support is at the zone of $2.59. 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 82.77 on the daily chart, and this may be a cause for concern. In case the price goes below $2.59 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $2.84 level may cause a pull-back move approaching $2.93 mark.

Party City Holdco Inc. (PRTY) is most likely going to rise 56.42 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $8 as 12-month high price target. This represents a whopping 170.27 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $4, which means a return possibility of 35.14 percent in comparison with the closing price of the stock of $2.96 in recent trading session. The lowest price set for the stock is $2.5 which is just above -15.54 percent from PRTY share’s price at the end of session.

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 grew 18.53 percent from that insider purchase. On 11/11/2019, HARRISON JAMES M, CEO, did a purchase of 100 thousand shares at a price of $2.32 per share. This increased 232 thousand shares to the insider’s fortune and the stock experienced a 18.53 percent rally in price since the news became public. This exchange saw 759.53 thousand shares get into the CEO account. On 11/11/2019, Director MATTHEWS NORMAN S recorded a purchase transaction valued at $493 thousand. The purchase at $2.32 a share has added 212.5 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 18.53 percent increase since the transaction reporting date. The company insider is left with 406.99 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 -33.41 percent since the transaction. Correale Michael A. currently holds a stake of 114.48 thousand in PRTY stock which is worth $338.86 thousand after the insider buying.

In the recent trading session, Party City Holdco Inc. (NYSE:PRTY) shares gained 7.42% or 0.2 points to reach at $2.96 with a thin trading volume of 2.658 million shares. It opened the trading session at $2.69, the shares rose to $2.84 and dropped to $2.67, the range by which the price of stock traded the whole session. The company now has a market cap of $249 million and currently has 90.15 million outstanding shares. Party City Holdco Inc. (PRTY) stock has accumulated 43.75 percent of market value in 21 trading days.

Stock analysts at Telsey Advisory Group cut their rating on shares of Party City Holdco Inc. (NYSE:PRTY) from Outperform to a new rating of Market Perform in their opinion released on November 08. Goldman analysts have downgraded their rating of PRTY shares from Buy to Neutral in a separate flash note to investors on November 08. Analysts at Goldman issued an upgrade for the stock to Buy from previous rating of Neutral, in a research note that dated back to July 24.

PRTY stock’s trailing 3-year beta is 1.2, 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 surged 17.95 percent year to date (YTD) compared to a decline of -76.37 percent in 52 week’s period. The firm’s shares are still trading -76.03 percent below its 1-year high of $12.37 and 95.05 percent up from 52-week low of $1.52. The average consensus ranking on the company is 2.4, 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) shares are trading at a P/E ratio of -1.44 times earnings posted in the trailing 12 months. The industry PRTY deals with has an average P/E of 20.57. Its P/B ratio is standing at 0.32X compared to the 9.06 industry average. It is additionally sporting a 0.22 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.3. 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%.

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 -7.1 percent to $749M in the financial fourth quarter, while EPS will soar by about -18.52 percent to $0.88 per share. In the last quarter, it’s 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, 23.89 percent in the coming year and the trend continues by 9.4 percent every year in the next 5 years.