At Home Group Inc. (HOME) Gets A Bullish Analyst View From Goldman

At Home Group Inc. (NYSE:HOME) recently claimed $1.47B as the price has approached $23.75. There came a -14.6% decline with the closing bell on Thursday. The stock remained range bound between $21.01 and $24.39. Trading activity significantly improved as the volume at ready counter increased to 6,033,167 shares versus 1,226,845 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 852,923 shares. The stock is now -2.26% above against its bear-market low of $24.3 on December 06, 2018. It has retreated -72.51% since it’s 52-week high of $40.97 reached in July. Now the market price is down -9.83% on the year and down -21.85% YTD.

HOME’s 50 day simple moving average (SMA 50) price is $27.9 and its 200-day simple moving average (SMA 200) price is $32.95. The company’s stock currently has a total float of 37M shares. Its weekly volatility is hovering around 7.84% and felt 5.31% volatility in price over a month. On the upside, the share price will test short term resistance at around $25.09. On a downside, the stock is likely to find some support, which begins at $21.71. The failure to get near-term support could push it to $19.67.

Separately, it has been reported that multiple insider activity took place at At Home Group Inc. (HOME). Chief Design Officer Ahlman Alissa M sold 19,290 shares for $2,772 in transaction occurred on 2018/12/03. After making this transaction, the Chief Design Officer owns a direct stake of 578,700 shares, worth $65,835, as per the last closing price. On 2018/10/24 Francis Philip L, Director at HOME, purchased 10,000 shares at an average price of $26.5 per share. The new stake is valued at $1,522,779.

Chief Development Officer, Mcleod Norman E had divested 2,592 shares for $5,038 through a trade on 2018/09/20. Following this activity, the insider holds 86,158 shares worth $119,653 as of recent close. Wall Street’s most bullish At Home Group Inc. (NYSE:HOME) analysts are predicting the share price to blow past $47 per share during the next 12 months. The current median share price forecast by them is $42.5, suggesting that the stock could increase 78.95% in that time frame. The average price target of $42.88 calls for a nearly 80.55% increase in the stock price.

It had seen a positive analyst call from Goldman, which upgraded the stock from Neutral to Buy on October 02. Analysts at Morgan Stanley, shed their negative views on June 26 by lifting it fromEqual-Weight to Overweight. Analysts at Wells Fargo, made their first call about the stock on April 24, recommending it is Outperform. Buckingham Research, released new analyst coverage on February 16, calling the stock is Buy.

When looking at valuations, At Home Group Inc. (HOME) has a pricey P/E of 42.26x as compared to industry average of 28.39x. Moreover, it trades for 15.85 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.25x price/book and 1.39x price/sales. Compared to others, At Home Group Inc. is in a different league with regards to profitability, having net margins of 2%. To put some perspective around this, the industry’s average net margin is 11.15%. HOME’s ROE is 3.4%, which is also considerably worse than the industry’s ROE of 15.92%. It’s also not liquid in the near term, with a current ratio of 0.9. The stock has a debt/capital of 0.78.

Shares of At Home Group Inc. (HOME) have dropped -25.4% since the company’s Jan-18 earnings report. Over the past 9 fiscal quarters, At Home Group Inc. (NYSE:HOME) has topped consensus earnings estimates in 6 quarters (66%), missed earnings in 2 quarters (22%), whereas at 1 occasion EPS met analyst expectations. HOME last reported earnings on August 29, 2018 when it released Jul-18 results that exceeded expectations. The company raked in $0.34 per share, -90.71% change on the same period last year. That was better than consensus for $0.33. Revenue for the recent quarter stood at $288.49 million, up 24% on last year and above the $286.5 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $284.12 million to $288.16 million, which should be compared with $0 generated last year.