Zacks Investment Research Downgrades SmileDirectClub (NASDAQ:SDC) to Sell

SmileDirectClub (NASDAQ:SDC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “SmileDirectClub is in the oral care industry. Their clear-aligner treatment addresses the large global orthodontics market. “

Several other analysts also recently commented on the company. Goldman Sachs Group started coverage on SmileDirectClub in a research note on Wednesday, December 18th. They set a “neutral” rating and a $10.00 target price on the stock. JPMorgan Chase & Co. started coverage on SmileDirectClub in a research note on Monday, October 7th. They set an “overweight” rating and a $31.00 target price on the stock. Bank of America started coverage on SmileDirectClub in a research note on Monday, October 7th. They set a “buy” rating and a $19.00 target price on the stock. Guggenheim started coverage on SmileDirectClub in a research note on Monday, October 7th. They set a “buy” rating and a $24.00 target price on the stock. Finally, Stifel Nicolaus started coverage on SmileDirectClub in a research note on Monday, October 7th. They set a “buy” rating and a $19.00 target price on the stock. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and eleven have given a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $18.83.

Shares of SmileDirectClub stock traded down $0.66 during midday trading on Tuesday, hitting $13.06. The company had a trading volume of 16,065,621 shares, compared to its average volume of 10,316,498. The company has a quick ratio of 3.47, a current ratio of 3.54 and a debt-to-equity ratio of 0.34. The firm has a 50 day moving average price of $8.90. SmileDirectClub has a 52-week low of $7.56 and a 52-week high of $21.10.

SmileDirectClub (NASDAQ:SDC) last posted its quarterly earnings results on Tuesday, November 12th. The company reported ($0.89) earnings per share for the quarter, topping the consensus estimate of ($0.99) by $0.10. The company had revenue of $180.20 million during the quarter, compared to analysts’ expectations of $165.30 million. The business’s quarterly revenue was up 50.5% on a year-over-year basis. As a group, equities analysts expect that SmileDirectClub will post -1.24 EPS for the current year.

In other news, Director Richard F. Wallman purchased 12,000 shares of the stock in a transaction dated Tuesday, November 26th. The shares were purchased at an average cost of $9.60 per share, with a total value of $115,200.00. Following the acquisition, the director now directly owns 26,000 shares of the company’s stock, valued at $249,600. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SDC. Signaturefd LLC bought a new position in SmileDirectClub in the 3rd quarter worth $65,000. Douglas Lane & Associates LLC purchased a new stake in SmileDirectClub in the 3rd quarter worth $166,000. Integrated Investment Consultants LLC purchased a new stake in SmileDirectClub in the 3rd quarter worth $261,000. KCL Capital L.P. purchased a new stake in SmileDirectClub in the 3rd quarter worth $278,000. Finally, FNY Investment Advisers LLC increased its stake in SmileDirectClub by 36.6% in the 4th quarter. FNY Investment Advisers LLC now owns 32,000 shares of the company’s stock worth $279,000 after buying an additional 8,576 shares in the last quarter. 22.14% of the stock is currently owned by hedge funds and other institutional investors.

About SmileDirectClub

SmileDirectClub, Inc operates a teledentistry platform that provides member's with a customized clear aligner therapy treatment in the United States and internationally. The company manages the end-to-end process, which include marketing, aligner manufacturing, fulfillment, treatment by a doctor, and monitoring through completion of their treatment proprietary with a network of approximately 240 state licensed orthodontists and general dentists through its teledentistry platform, SmileCheck.

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