Sprint Corporation (S): Is This Insider Trading a Scary Sign?

After opening Thursday at around $5.88, Sprint Corporation (NYSE:S) stock surged to as high as $5.94. It then made a downturn, dipping as low as $5.76. Although the stock bounced a bit into the close, it finished the day at $5.9, up 0.06 points or 1.03 percent on the day. The final volume for the day was 25.895 million, which was more than its average volume. The firm is left with a market cap of $24.3 billion and now has 4.12 billion shares outstanding. Sprint Corporation (S) stock has lost -6.2 percent of market value in 21 trading days.

S stock has a trailing 3-year beta of 0.52, 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 $0.11 a share in the trailing twelve months. The stock’s value has surged 1.37 percent year to date (YTD) against a rise of 15.69 percent in 12 month’s time. The company’s shares still trade -10.88 percent away from its 1-year high of $6.62 and 22.66 percent up from 52-week low of $4.81. The average consensus rating on the company is 3.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Sprint Corporation (S) will probably climb -2.03 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $8.5 price as 12-month high target. This represents a whopping 44.07 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $6, which represents a return potential of 1.69 percent when compared to the closing price of the stock of $5.9 on Thursday, February 07. The lowest price target for the stock is $4.5 — slightly more than -23.73 percent from S’s current share price.

History has shown that shares in Sprint Corporation have gone up on 20 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. Investors will get their next glimpse of S’s Q4 earnings on May 06. Analysts are forecasting revenue to climb 2.2 percent to $8.42B in the fiscal fourth quarter, while earnings are seen soaring by nearly -101.14 percent to -$0.02 per share. It earned $0.05 per share, better than the -$0.01, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $8.6B, better than the $8.43B analysts expected. Earnings are estimated to increase by 124.4 percent this year, -6.45 percent next year and continue to increase by 5 percent annually for the next 5 years.

Let’s take a look at some insider activity at Sprint Corporation (NYSE:S) and see the pattern. The earliest insider trade took place on 11/19/2018. Fisher Ronald D parted with a total of 327.53 thousand shares of company at average share price of $6.2. The total for the sales was set at $2.03 million. After this transaction, the Director account balance stood at 2.09 million shares. The stock lost -4.84 percent since that insider sale. On 11/07/2018, Gracia Jorge Enrique, Chief Legal Officer, sold 129.65 thousand shares at a price per share of $6.38. This removed 827.18 thousand shares from the insider’s fortune and the stock saw a -7.52 percent retreat in value since the news became public. This transaction left 903.4 thousand shares in the Chief Legal Officer account.

On 08/20/2018, Chief Technology Officer Saw John performed a sale transaction worth $1.6 million. This sale at $6.14 each has eliminated 260.1 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -3.91 percent decrease since the transaction was reported. The insider now is left with 1.14 million shares remaining in the account. Saw John, who performs the Chief Technology Officer job, sold 88.32 thousand shares for $574.07 thousand. The disposal occurred on 04/27/2018 was priced at $6.5 per share. The share price plunged -9.23 percent since the reporting date. Saw John now left with a stake of 1.06 million S stock worth $6.26 million after the insider selling.

The stock is currently hovering around the first support level of $5.79. Below this, the next support is placed in the zone of $5.69. Till the time, the S stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 42.57 on daily chart, which may remain a cause for concern. If the price breaks below $5.69 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $5.97 mark may result into a pull-back move towards $6.05 level.

Shares of Sprint Corporation (S) are trading at a P/E ratio of 100.52 times earnings reported for the past 12 months. The industry S operates in has an average P/E of 15.83. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span.Further, it is sporting a 0.74 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.32. 59 percent is the gross profit margin for Sprint Corporation and operating margin sits at 7.8 percent. Along with this, the net profit margin is 23.1 percent.