Should Investors Trust The Upside Potential In Babylon Holdings Limited (BBLN)?

Babylon Holdings Limited (NYSE:BBLN) currently has a daily average trading volume of 545.53K but it saw 1072314 shares traded on Thursday. With a market cap of 17.21M USD, stock’s current market price of $0.60 came falling about -15.84 while comparing to the previous closing price of $0.71. In past 52 weeks, the stock remained buoying in the range of price level as high as $36.25 and as low as $0.71. In the recent trading on the day, stock has struck highest price mark of $0.698 while lowest mark touched by it was $0.5701.

Taking a look at 20-day trading activity of Babylon Holdings Limited (BBLN) gives us an average price of $3.5742, while its current price level is -98.36% below from 52-week high level whereas it is -15.84% above from lowest level seen by the stock during that period. Simple moving average of 50 days or SMA-50 of the stock’s closing price is $5.2771 while that of 200 days or SMA-200 reads an average of $10.6281. A closer look into the stock’s movement over the week reveals that its volatility is standing at 11.41% during that period while stretching the period over a month that increases to 19.97%. It is also necessary to take a look into other indicators of a stock too, to get a better idea about its price movement. And in doing so, we find stock’s 14-day relative strength index (RSI) standing at 21.13 which implies that the stock is in oversold territory.

Babylon Holdings Limited (BBLN)’s stock is currently under the radar of 1 analysts who are in consensus at a 12-month price target range of between $13.00 and $13.00 for company’s shares. The average price target assigned by the average number of analysts to a stock is a way to gauge worth of any stock in next 52 weeks. And in assigning price target to a stock, some analysts adopt a bearish approach by advocating lower-than-average price target which in this case is $13.00 while some adopt bullish approach by assigning higher-than-average price target which reads the price to top $13.00. Average price target assigned by them is $13.00 which highlights an upside potential of 95.38% for the stock over that period. And to attain the median price target of $13.00 assigned by those analysts, stock has to add about 95.38% of value to its current levels.

Data by FactSet Research shows that 1 analysts have issued their ratings for the stock. 1 of them are in opinions that stock is a Sell, while 0 are advising it as an Overweight. 0 analysts suggested the investors to Buy the stock while 0 advised them to Hold. Recommendations by all of those brokerages imply a consensus rating of Sell for the stock and that issued by Wall Street to investors is Moderate Sell.

Over the week, BBLN’s stock price is moving -35.31% down while it is -91.45% when we observe its performance for the past one month. Year-to-date it is -91.19% down and over the past year, the stock is showing a downside performance of -97.52%.

The latest quarterly earnings report issued by the company was for quarter ended 3/30/2023, when its quarterly earnings per share (EPS) of -$2.53 beat the consensus estimate of -$2.75 for the same. The company is expected to be releasing its next quarterly report in 09/13/2023, for which analysts forecasted an EPS of -$2.44 while estimate for next year EPS is -$7.95. For BBLN, analysts are forecasting an EPS-growth rate of 33.80% for current year and estimate for EPS growth in next year is 24.00%. In next quarter, company is expected to be making quarterly sales of $205.9 million as analysts are expecting the sales for current fiscal year at $1.04 billion and seeing the company making $943.7 million in sales next year. Moreover, analysts are in estimates of $314.5 million for current-quarter revenue.

Currently, Babylon Holdings Limited’s total number of outstanding shares is 25.03M with 42.64% of that held by the insiders while 39.58% of its common stock has been owned by the institutions. Stock has a price to sale or P/S ratio amounts to 0.01.