Hutchinson Technology - Value Alert
Texas (October 8, 2013) Wax Ink has issued a No Investment Interest opinion for Hutchinson Technology, Inc. (Nasdaq: HTCH) based on a recent baseline equity review that placed fair value between $6-$8.
No investment interest means that the current risk reward ratio is neither favorable nor unfavorable for investment consideration at this time.
The recent close of $3.56 is approximately 5% above the fair value buy target for the stock and approximately 49% below the fair value close target for the stock. The recent close is also 29% below analysts’ twelve-month $5.00 median price target for the stock.
The recent close represents a 111% increase in the one-year price of the stock, while year-over-year sales decreased 11%, year-over-year earnings increased 14%, year-over-year debt decreased 14%, and year-over-year free cash flow decreased 57%.
The stock currently has a trailing twelve-month PE Ratio of (5), a PEG Ratio of 0.4 basis estimated forward earnings growth of (14.5%).
In the past 52 weeks, share prices have moved between a high of $6.69 and a low of $1.35, placing equilibrium at $3.60.
With the recent close, the stock is trading 88% below the 52 week high, 62% above the 52 week low, and 1% below equilibrium.
The three-month average daily trading volume for this stock is, approximately 396,000 shares.
Hutchinson Technology is a technology manufacturer that creates value by developing solutions to critical customer problems.
The company's listed competitors include Headway Technologies, Nitto Denko Corporation,and TDK Corporation.
Financial information contained herein, is based on the company's most recent annual SEC filing for year ending September 30, 2012 and all prices are per share unless otherwise noted.
Wax Ink currently has no investment position in any company mentioned in this alert.
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