Penumbra, Inc. is a global healthcare company focused on innovative therapies. The company designs, develops, manufactures, and markets innovative devices and has a broad portfolio of products that addresses challenging medical conditions and significant clinical needs across two major markets, neuro and vascular.
Pricing and Performance
Currently priced at $315.10, Penumbra has experienced steady growth with its stock value rising over 687.75% since inception. In the past year alone, the company saw a rise of 113.02%, with an impressive 61.18% in the last 6 months and 38.74% year to date. Even with short-term volatility, as indicated by a decrease of 1.74% over the past week, the longer-term trend has been positive.
Financial Highlights
Penumbra has a market capitalization of approximately $12 billion. It reported an EBITDA of $41.6 million, highlighting its ability to generate operational profits. However, a price-to-earnings (P/E) ratio of 1964.25 suggests the stock is highly overvalued relative to its earnings. The company does not pay a dividend, indicating that it may be reinvesting its earnings to fuel its high growth. The estimated earnings per share for the current year is $1.53, expected to increase to $2.55 next year, suggesting analysts expect continued growth.
Valuation
The company's trailing price to earnings ratio, at 1964.25, and forward price to earnings ratio, at 277.77, suggest a high valuation. Moreover, the company's price to sales ratio of over 10 further signals potential overvaluation. However, these high ratios might be justified by the company's strong growth and potential in the market.
Share Statistics
Penumbra has approximately 38.18 million shares outstanding, with a majority of these (91.3%) held by institutional investors. The relatively low percentage of insider ownership (3.91%) might indicate a lack of confidence from the management, or simply a high level of institutional interest.
Technical Analysis
The company has a relatively low beta value of 0.54, indicating that the stock is less volatile than the market. Despite the high short ratio of 12.13, the short percent is relatively low at 0.1448, suggesting that the majority of investors are bullish on the stock.
Analyst Ratings
Out of 12 analysts covering the stock, 8 rate it as a strong buy and 3 as a buy, while only one suggests a hold. No analysts recommend selling. The average target price is $314.22, just below the current stock price, indicating that analysts believe the stock is fairly valued at current levels.
Institutional Holdings
The stock is highly held by institutions, with FMR Inc, BlackRock Inc, and Vanguard Group Inc being among the largest shareholders. This high level of institutional ownership often signals confidence in the company's outlook.
Insider Transactions
Recent insider trading activity shows both sales and acquisitions of the company’s shares. The transactions have generally been sales, which might be a cause for concern, as it could indicate that insiders are cashing in on the recent price increase, but this is only one of many factors to consider.
Outlook
While Penumbra's high P/E ratio might suggest overvaluation, the company's consistent growth, positive earnings forecasts, and high institutional ownership indicate that it may have strong future potential. As always, individual investors should consider their risk tolerance and investment goals before investing.
In terms of any kind of short term entry, the stock "reads" as potentially expensive so I would want to wait for a pullback to below and then crossing back up through the low 50's area for the RSI. For risk management, a trailing stop loss of around 12% would have kept you in most of this trade. If it broke below that it could have been a good sign to exit and look for a new entry when the trend resumed.
As always how you interpret and decide to act on any results is up to you. This is just data not financial or trading advice and past performance is in no way any guarantee of future performance. Think of it as a way to spot stocks you might be interested in and can add to your watch list and perform further research on and or discuss with your broker.
Again. Not trading advice. Industries and companies change. Trends can end. Do your own research / discuss it with your advisor, but might be one to watch.
Pricing and Performance
Currently priced at $315.10, Penumbra has experienced steady growth with its stock value rising over 687.75% since inception. In the past year alone, the company saw a rise of 113.02%, with an impressive 61.18% in the last 6 months and 38.74% year to date. Even with short-term volatility, as indicated by a decrease of 1.74% over the past week, the longer-term trend has been positive.
Financial Highlights
Penumbra has a market capitalization of approximately $12 billion. It reported an EBITDA of $41.6 million, highlighting its ability to generate operational profits. However, a price-to-earnings (P/E) ratio of 1964.25 suggests the stock is highly overvalued relative to its earnings. The company does not pay a dividend, indicating that it may be reinvesting its earnings to fuel its high growth. The estimated earnings per share for the current year is $1.53, expected to increase to $2.55 next year, suggesting analysts expect continued growth.
Valuation
The company's trailing price to earnings ratio, at 1964.25, and forward price to earnings ratio, at 277.77, suggest a high valuation. Moreover, the company's price to sales ratio of over 10 further signals potential overvaluation. However, these high ratios might be justified by the company's strong growth and potential in the market.
Share Statistics
Penumbra has approximately 38.18 million shares outstanding, with a majority of these (91.3%) held by institutional investors. The relatively low percentage of insider ownership (3.91%) might indicate a lack of confidence from the management, or simply a high level of institutional interest.
Technical Analysis
The company has a relatively low beta value of 0.54, indicating that the stock is less volatile than the market. Despite the high short ratio of 12.13, the short percent is relatively low at 0.1448, suggesting that the majority of investors are bullish on the stock.
Analyst Ratings
Out of 12 analysts covering the stock, 8 rate it as a strong buy and 3 as a buy, while only one suggests a hold. No analysts recommend selling. The average target price is $314.22, just below the current stock price, indicating that analysts believe the stock is fairly valued at current levels.
Institutional Holdings
The stock is highly held by institutions, with FMR Inc, BlackRock Inc, and Vanguard Group Inc being among the largest shareholders. This high level of institutional ownership often signals confidence in the company's outlook.
Insider Transactions
Recent insider trading activity shows both sales and acquisitions of the company’s shares. The transactions have generally been sales, which might be a cause for concern, as it could indicate that insiders are cashing in on the recent price increase, but this is only one of many factors to consider.
Outlook
While Penumbra's high P/E ratio might suggest overvaluation, the company's consistent growth, positive earnings forecasts, and high institutional ownership indicate that it may have strong future potential. As always, individual investors should consider their risk tolerance and investment goals before investing.
In terms of any kind of short term entry, the stock "reads" as potentially expensive so I would want to wait for a pullback to below and then crossing back up through the low 50's area for the RSI. For risk management, a trailing stop loss of around 12% would have kept you in most of this trade. If it broke below that it could have been a good sign to exit and look for a new entry when the trend resumed.
As always how you interpret and decide to act on any results is up to you. This is just data not financial or trading advice and past performance is in no way any guarantee of future performance. Think of it as a way to spot stocks you might be interested in and can add to your watch list and perform further research on and or discuss with your broker.
Again. Not trading advice. Industries and companies change. Trends can end. Do your own research / discuss it with your advisor, but might be one to watch.
Comment:
We got a good little pull back into a better value area followed by a return to the uptrend. It will be interesting to see if it can break through this resistance area where it failed a couple of times previously.
Comment:
Pushed through so far. Might need to move higher and then pullback and retest that level.
Comment:
Up 11% off that pullback and pushing through that support area. I'd still be thinking about a retest.
Comment:
Another strong move up today.
NOT TRADING ADVICE. ALWAYS DO YOUR OWN RESEARCH.
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MY YOUTUBE TRADINGVIEW TIPS AND TRICKS: bit.ly/3kRW08o
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