Many stocks have been testing new highs in 2020, and one of the most notable is Goosehead Insurance Inc (GSHD). Currently, GSHD is trading at $69.53 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $61.67.
To add more color to this target, the company’s high over the last year is $72.75 and the low is $37.26. Over the last 52 weeks, GSHD is down -4.43% while the S&P 500 is down -0.75%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, GSHD reported a profit of $20.22 million. Goosehead Insurance Inc also saw revenues increase to $20.43 million. In addition, GSHD has free cash flow of -$2.44 million as of 03-2020 The company’s EBITDA came in at $0.95 million which compares well with its peers.
GSHD booked profit margins of 1.30%, its Return on Equity (ROE) is 7.30%, and its Return on Assets is 1.70%. All told, it is clear that, GSHD needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. GSHD has a short ratio of 8.14 and outstanding shares of 15.56M.
GSHD has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.23 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.10. Goosehead Insurance Inc GSHD also noted assets of $75.89 million at the end of the last quarter. Investors should also keep an eye on sector updates as GSHD has historically followed its peers on positive news.
All told, Goosehead Insurance Inc GSHD has strung together solid data and demonstrated underlying fundamentals. At its current valuation, GSHD represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Goosehead Insurance Inc GSHD is now commanding a market cap of 2.48B and a float of 14.34M. GSHD is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of GSHD stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in GSHD, either long or short, and we have not been compensated for this article.