Piedmont Lithium Inc. (PLL): What Does Valuation Ratios Tell Us?

Piedmont Lithium Inc. (NASDAQ:PLL) saw an upside of 4.94% to close Friday at $65.65 after adding $3.09 on the day. The 5-day average trading volume is 515,080 shares of the company’s common stock. It has gained $66.30 in the past week and touched a new high 3 times within the past 5 days. An average of 526,185 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 500,020.

PLL’s 1-month performance is -2.90% or -$2.82 on its low of $60.40 reached on 03/03/23. The company’s shares have touched a 52-week low of $32.08 and high of $79.99, with the stock’s rally to the 52-week high happening on 02/16/23. YTD, PLL has achieved 49.14% or $21.63 and has reached a new high 15 times. However, the current price is down -17.93% from the 52-week high price.

Insider Transactions

PLL stock investors last saw insider trading activity on Jan 06.Phillips Keith D. (President and CEO) most recently sold 705 shares at $50.36 per share on Jan 06. This transaction cost the insider $35,504. EVP and CAO, McVey Krishna, sold 315 shares at a price of $50.32 on Jan 06. Then, on Jan 06, EVP and CFO WHITE MICHAEL D sold 297 shares at a price of $50.29 per share. This transaction amounted to $14,936.

Valuation Metrics

PLL stock has a beta of 1.08. Moving on to other valuation ratios, the price-to-book (PB) in the most recent quarter is 4.38.

Piedmont Lithium Inc.’s quick ratio for the period ended June 29 was 7.60, with the current ratio over the same period at 7.60. The firm’s gross profit as reported stood at $0.12 million against revenue of $31.39 million.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 1099.79% to -$9.62 million, while revenue of $16.66 million was 273.18% off the previous quarter. Analysts expected PLL to announce -$0.38 per share in earnings in its latest quarter, but it posted -$0.53, representing a -39.50% surprise. EBITDA for the quarter stood at more than -$9.66 million. PLL stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 17.63 million, with total debt at $1.91 million.

Let’s look briefly at Piedmont Lithium Inc. (PLL) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 03 March was 51.27% to suggest the stock is trending Neutral, with historical volatility in this time period at 51.96%.

The stock’s 5-day moving average is $64.61, reflecting a +6.49% or $4.00 change from its current price. PLL is currently trading -5.76% above its 20-day SMA, +23.54% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +36.71% and SMA200 by+26.76%.

Stochastic %K and %D was 25.78% and 25.54% and the average true range (ATR) pointed at 3.90. The RSI (14) points at 51.91%, while the 14-day stochastic is at 32.05% with the period’s ATR at 3.87. The stock’s 9-day MACD Oscillator is pointing at 0.73 and -1.18 on the 14-day charts.

Analyst Ratings

Analysts offering their rating for PLL stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate PLL as a “sell,”, while 0 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 7 have offered a “buy” rating.

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