Aphria Inc. (APHA) Stock Is Worth the Long-Term Chance

By watching the trading activity of corporate insiders, it will become easier to get a sense of Aphria Inc. (NYSE:APHA)’s prospects.

Aphria Inc. (APHA) is expected to jump by -100 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $28price as 12-month high target. This represents a whopping 336.82 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $18, which represents a return potential of 180.81 percent when compared to the closing price of the stock of $6.41 on Monday, January 07. The lowest price target for the stock is $7 — slightly more than 9.2 percent from APHA’s current share price.

The shares are currently floating around the first support level of $6.18. Below this, the next support is placed in the zone of $5.94. Till the time, the APHA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 47.46 on daily chart, which may remain a cause for concern. If the price breaks below $5.94 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $6.56 mark may result into a pull-back move towards $6.7 level.

APHA shares accumulated 0.37 points or 6.13 percent on Monday to $6.41 with a light trade volume of 6.022 million shares. After opening the session at $6.25, the shares went as high as $6.47 and as low as $6.09, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.6 billion and now has 249.76 million shares outstanding. Aphria Inc. (APHA) stock has gained 42.13 percent of market value in 21 trading days.

APHA stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.15 a share in the trailing twelve months. The stock’s value has surged 12.65 percent year to date (YTD) against a decline of -57.01 percent in 12 month’s time. The company’s shares still trade -67.74 percent away from its 1-year high of $19.87 and 70.93 percent up from 52-week low of $3.75. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Aphria Inc. (APHA) are trading at a P/E ratio of 173.01 times earnings reported for the past 12 months. The industry APHA operates in has an average P/E of 31.13. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 48.31 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4. 0 percent is the gross profit margin for Aphria Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.