Digging Through Caesarstone Ltd. (CSTE) Fundamentals

On Thursday, shares of Caesarstone Ltd. (NASDAQ:CSTE) marked $11.47 per share versus a previous $11.43 closing price. With having a 0.35% gain, an insight into the fundamental values of Caesarstone Ltd., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. CSTE showed a fall of -23.89% within its YTD performance, with highs and lows between $7.65 – $17.68 during the period of 52 weeks, compared to the simple moving average of -8.91% in the period of the last 200 days.

Stifel equity researchers changed the status of Caesarstone Ltd. (NASDAQ: CSTE) shares from “Buy” to a “Hold” rating in the report published on February 13th, 2020. Other analysts, including Stifel, also published their reports on CSTE shares. Stifel repeated the rating from the previous report, marking CSTE under “Buy” rating, in the report published on August 8th, 2019. Additionally, CSTE shares got another “Underperform” rating from Credit Suisse. On January 8th, 2018, Chardan Capital Markets Upgrade an Buy rating and increased its price target to $32. On the other hand, Chardan Capital Markets Reiterated the “Neutral” rating for CSTE shares, as published in the report on November 7th, 2017. JP Morgan seems to be going bullish on the price of CSTE shares, based on the price prediction for CSTE. Another “Neutral” rating came from Chardan Capital Markets, providing a prediction for price target according to the report published in May 11th, 2017.

Caesarstone Ltd. (CSTE) Analysis

The present dividend yield for CSTE owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Caesarstone Ltd., the company needs to provide a healthy cash flow, currently at the value of 8.38. In addition, the growth of sales from quarter to quarter is recording -1.20%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Caesarstone Ltd. (CSTE) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 3.30% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.90 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while CSTE is currently recording an average of 109.12K in volumes. The volatility of the stock on monthly basis is set at 4.26%, while the weekly volatility levels are marked at 3.25%with 1.15% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $11.00, indicating growth from the present price of $11.47, which can represent yet another valuable research and analysis points that can help you decide whether to invest in CSTE or pass.

What to Look for When Analyzing Caesarstone Ltd. Shares?

Caesarstone Ltd. (CSTE) is based in the Israel and it represents one of the well-known company operating with Industrials sector. If you wish to compare CSTE shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 24.77 for Caesarstone Ltd., while the value 13.18 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 0.46 is supported by the yearly EPS growth of -47.40%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 40.46%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 39.30% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in CSTE Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in CSTE in the recent period. That is how Excellence Investments Ltd. now has an increase position in CSTE by 12.00% in the first quarter, owning 2.12 million shares of CSTE stocks, with the value of $25.09 million after the purchase of an additional 226,883 shares during the last quarter. In the meanwhile, Global Alpha Capital Management L also increased their stake in CSTE shares changed 43.09% in the first quarter, which means that the company now owns 1.85 million shares of company, all valued at $21.95 million after the acquisition of additional 557,837 shares during the last quarter.

BlackRock Fund Advisors acquired a new position in Caesarstone Ltd. during the first quarter, with the value of $19.04 million, and Migdal Insurance Co. Ltd. increased their stake in the company’s shares by 8.19% in the first quarter, now owning 75,000 shares valued at $11.74 million after the acquisition of the additional 990834 shares during the last quarter. In the end, Clal Pension & Provident Funds Lt increased their position by 7.94% during the first quarter, now owning 948533 CSTE shares, now holding the value of $11.24 million in CSTE with the purchase of the additional 127,025 shares during the period of the last quarter. At the present, 39.30% of CSTE shares are in the ownership of institutional investors.