Analysis of The Children’s Place Inc. (NASDAQ:PLCE): Selected Notes

The Children’s Place Inc. (NASDAQ: PLCE) closed the day trading at $38.60 down -6.27% from the previous closing price of $41.18. In other words, the price has decreased by -$2.58 from its previous closing price. On the day, 1348351 shares were traded. PLCE stock price reached its highest trading level at $44.12 during the session, while it also had its lowest trading level at $38.21.

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For a better understanding of PLCE, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 24.87 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 45.91. For the most recent quarter (mrq), Quick Ratio is recorded 0.20 and its Current Ratio is at 1.00. In the meantime, Its Debt-to-Equity ratio is 1.48 whereas as Long-Term Debt/Eq ratio is at 0.23.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Telsey Advisory Group on February 07, 2023, Downgraded its rating to Market Perform and sets its target price to $46 from $50 previously.

On August 18, 2022, Telsey Advisory Group reiterated its Outperform rating and also upped its target price recommendation from $70 to $65.

B. Riley Securities reiterated its Buy rating for the stock on August 18, 2022, while the target price for the stock was revised from $69 to $64.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Jun 29 when BACHMAN JOHN E. bought 1,500 shares for $38.50 per share. The transaction valued at 57,750 led to the insider holds 20,182 shares of the business.

ALUTTO JOSEPH A sold 6,115 shares of PLCE for $296,578 on Jun 01. The Director now owns 37,899 shares after completing the transaction at $48.50 per share. On Mar 23, another insider, BACHMAN JOHN E., who serves as the Director of the company, bought 2,500 shares for $48.83 each. As a result, the insider paid 122,075 and bolstered with 18,682 shares of the company.

Valuation Measures:

As of this moment, The’s Price-to-Earnings (P/E) ratio for their current fiscal year is 6.07, and their Forward P/E ratio for the next fiscal year is 11.53. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.27 while its Price-to-Book (P/B) ratio in mrq is 2.38.

Stock Price History:

Over the past 52 weeks, PLCE has reached a high of $57.00, while it has fallen to a 52-week low of $29.20. The 50-Day Moving Average of the stock is 41.78, while the 200-Day Moving Average is calculated to be 40.77.

Shares Statistics:

Over the past 3-months, PLCE traded about 458.20K shares per day on average, while over the past 10 days, PLCE traded about 521.15k shares per day. A total of 13.06M shares are outstanding, with a floating share count of 11.60M. Insiders hold about 2.20% of the company’s shares, while institutions hold 95.00% stake in the company. Shares short for PLCE as of Jan 30, 2023 were 2.45M with a Short Ratio of 2.48M, compared to 2.38M on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 20.01% and a Short% of Float of 25.68%.

Earnings Estimates

Current recommendations for the stock of the company come from 3 analysts. On average, analysts expect EPS of -$2.47 for the current quarter, with a high estimate of $0.75 and a low estimate of -$4.13, while EPS last year was $3.02. The consensus estimate for the next quarter is -$1.18, with high estimates of -$0.56 and low estimates of -$1.8.

Analysts are recommending an EPS of between $4.23 and -$0.51 for the fiscal current year, implying an average EPS of $1.1. EPS for the following year is $3.61, with 3 analysts recommending between $4.03 and $2.8.

Revenue Estimates

2 analysts predict $455.33M in revenue for the current quarter. It ranges from a high estimate of $456M to a low estimate of $454.67M. As of the current estimate, The Children’s Place Inc.’s year-ago sales were $507.8M, an estimated decrease of -10.30% from the year-ago figure. For the next quarter, 2 analysts are estimating revenue of $342.38M, a decrease of -5.50% over than the figure of -$10.30% in the same quarter last year. There is a high estimate of $350.76M for the next quarter, whereas the lowest estimate is $334M.

A total of 2 analysts have provided revenue estimates for PLCE’s current fiscal year. The highest revenue estimate was $1.71B, while the lowest revenue estimate was $1.71B, resulting in an average revenue estimate of $1.71B. In the same quarter a year ago, actual revenue was $1.92B, down -10.90% from the average estimate. Based on 2 analysts’ estimates, the company’s revenue will be $1.71B in the next fiscal year. The high estimate is $1.72B and the low estimate is $1.7B. The average revenue growth estimate for next year is up 0.30% from the average revenue estimate for this year.