Liberty Latin America Ltd. [NASDAQ:LILA] shares are showing some interesting activity. The company’s daily low is at $10.30 as the high is reaching $11.07.
If readers are not familiar, Liberty Latin America Ltd. is in the Communication Services sector under the Telecom Services industry. This week, we are watching the stock hit price per sales of 0.47 with an earning per share of -2.72.
As a reference point, the S&P 500 is trading 0.87% over the last 52 weeks, while LILA stock is trading -31.95%.
The Price is right
Holding a Market Cap of $1.76 billion, Liberty Latin America Ltd. has seen a trading range over the last year of $7.55-$18.73.
For the last five days, LILA is up from its last closing price. The average shares trading hands each day is 282.54K, with average 10-day volume coming in at 0.44 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for LILA. When we apply the Elder Force Index to Liberty Latin America Ltd., we are seeing an Elder Force Indicator number of 1441629.8.
The recent performance of the stock is another area that can tell traders how to proceed. LILA is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 48.46. Moreover, the company’s enterprise value has gone from $8.98B to $9.08B quarter-over-quarter. This could be an inflection point for the company, but either way we believe you should be adding them to your watchlist.
Liberty Latin America Ltd. also saw quarter revenue growth year over year of 4.35%. In addition, the company has operating cash flow of $840.4 million.
Looking at popular technical indicators, the company’s 5-day moving average is 9.60 compared to the 50-day moving average of 8.83. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. LILA currently holds a 9-day RSI of 79.24%, while 100-day RSI stands at 49.42%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. LILA’s 9-day MACD is 0.84 and the company’s 100-day MACD stands at 0.34.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 6.72% by insiders and 75.21% by institutions. Regarding institutional holdings, Genesis Investment Management, LLP owns 9.86%, while the second top holder, Ashe Capital Management, LP, currently owns 9.45%.
Over the last six months, insiders have bought 10,000 with the most recent transaction from NOYES CHRISTOPHER J, SVP, CHIEF FINANCIAL OFFICER, with a purchase at price 8.10 per share.
Overall, the recommended rating for LILA is Moderate Buy. Currently, the company has 5 analysts watching the stock, and the average quarterly earnings estimate is -0.07. Quarterly revenue estimates are averaging 956.4M with the high estimate reaching 1.1B and the low at 875.3M.
To review, the current 1-year target estimate is sitting at 14.90, while the current price 11.05. Based on this, we expect the stock to rise considering the aforementioned fundamentals.