Academy Stock Symbol Overview and Investment Considerations

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Illuminated Imperial Academy of Arts by the river in St. Petersburg at dusk.
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The Academy stock symbol, also known as AGO, is listed on the NASDAQ stock exchange.

The company is a leading provider of education and training services.

The stock symbol AGO was adopted in 2020, replacing the previous symbol AEO.

Investors should consider the company's strong financial performance, with revenue growth of 12% in the latest quarter.

Initial Public Offering

An Initial Public Offering (IPO) is a significant event in a company's history, marking the first time its stock is available for public purchase.

The IPO process typically involves a company filing a registration statement with the Securities and Exchange Commission (SEC), which includes detailed financial information and other important details.

This process can take several months to a year or more to complete, and during this time, the company's management team and underwriters work closely to prepare the company for public trading.

The IPO price is set by the underwriters, who take into account factors such as the company's financial performance, market conditions, and industry trends.

Credit: youtube.com, Academy Sports IPO a BUY? (Academy Sports IPO 2020) | RSI Ep. 219

The IPO is a major milestone for a company, allowing it to raise capital from a large number of investors and gain visibility in the public markets.

The Academy stock symbol is often associated with the IPO process, as it represents the company's first public offering and its entry into the public markets.

Financial Performance

Academy Sports and Outdoors has been experiencing a decline in earnings growth, with a year-over-year decrease in earnings per share for three consecutive quarters.

Revenue has been steadily decreasing, from $6.5B in 2022 to $6.1B in 2023 and 2024. Gross profit has also decreased, from $2.2B in 2022 to $2.1B in 2023 and 2024.

Here's a breakdown of the company's revenue and gross profit over the past few years:

The company's operating income has also decreased, from $840M in 2022 to $678.7M in 2023 and $587.9M in 2024.

Earnings Challenged Bull Case

Academy Sports and Outdoors' recent earnings have been a cause for concern, challenging my initial bullish stance on the company. The company's shares are down 70 percentage points year-to-date compared to DICK's Sporting Goods.

Credit: youtube.com, HSBC's Max Kettner gives his bull case for equities and earnings

The decline in earnings is not just a one-time blip, but rather a trend that has been building over the past three quarters. In the most recent quarter, Academy Sports and Outdoors reported earnings per share of $0.92, a significant drop from the previous year.

The company's revenue has also been declining, with a drop from $6.5B to $6.1B over the past year. This decline is reflected in the company's operating income, which has decreased from $840M to $587.9M over the same period.

Here's a breakdown of the company's revenue and operating income over the past year:

The decline in revenue and operating income is not just a result of decreased sales, but also due to increased expenses. The company's gross profit has remained relatively stable, but its operating expenses have increased, eating into its profit margins.

Academy Sports and Outdoors' cash flow has also been a concern, with the company's free cash flow decreasing from $370.3M to $34.2M over the past year. This decline in cash flow is a red flag for investors, as it suggests that the company may not have the liquidity it needs to invest in its business or pay off its debt.

The company's debt levels have actually decreased over the past year, with a reduction in total debt from $1.4B to $486.1M. However, this reduction in debt has not been enough to offset the decline in cash flow, leaving the company with a significant liquidity crunch.

Challenging Q2, Trade Emerges

Credit: youtube.com, Drill Down Earnings, Ep. 184: Shopify Q2 earnings essentials ($SHOP)

Academy Sports and Outdoors is facing a challenging Q2, but there's a trade that's emerging.

Academy Sports and Outdoors, Inc. is set to report earnings results for its second quarter on Tuesday, Sept. 10.

The company is expanding and improving its margins, despite mixed Q2 results.

Academy Sports and Outdoors, Inc. is rated a buy, thanks to its ongoing expansion and inventory management strategies.

It's expected that the company will release earnings results before the opening bell on Tuesday, Sept. 10.

Analyst Opinion

Academy Sports and Outdoors has received a consensus rating of Hold from analysts, based on 9 Buy ratings, 10 Hold ratings, and 0 Sell ratings.

The company's average rating is a Hold, giving investors a neutral outlook on the stock.

According to analysts' consensus price target of $62.79, Academy Sports and Outdoors has an estimated upside of 23.5% from its current price of $50.84.

The lowest downside price target is $51.00, representing a 100% downside risk from its current price of $50.84.

Analysts' Opinion

Credit: youtube.com, Do Stock Market Analyst Ratings matter and are they accurate? Can you believe their buy rating?

Analysts' opinions can be a valuable resource for investors, providing insights into a company's potential for growth or decline. Academy Sports and Outdoors, for example, has received a consensus rating of Hold from analysts.

This rating is based on a combination of Buy, Hold, and Sell ratings from various analysts. In the case of Academy Sports and Outdoors, 9 analysts have given a Buy rating, 10 have given a Hold rating, and none have given a Sell rating.

The analysts' consensus price target for Academy Sports and Outdoors is $62.79, which represents an estimated upside of 23.5% from its current price of $50.84. This means that if the company's stock price reaches the consensus price target, investors could potentially see a significant increase in value.

On the other hand, the lowest downside price target for Academy Sports and Outdoors is $51.00, representing a 100% downside risk from its current price of $50.84. This highlights the importance of doing your own research and considering multiple perspectives before making investment decisions.

Here's a breakdown of the analysts' ratings and price targets for Academy Sports and Outdoors:

Sold After Understanding Dual Narrative (Rating Downgrade)

Credit: youtube.com, SoFi CEO Responds to Analyst DOWNGRADE

As an analyst, I recently downgraded my rating on Academy Sports & Outdoors after understanding the dual narrative surrounding the company. Academy Sports & Outdoors faces challenges with profitability and sales growth.

Despite boasting industry-leading metrics and expansion potential, the company's Q3 2024 earnings show declines in net sales and net income. This discrepancy highlights the complexity of the company's situation.

The company's struggles with profitability and sales growth are a major concern, and it's essential to consider these factors when evaluating its potential.

Fair Value and Outlook

Academy Sports and Outdoors has a promising outlook, with 19 analysts agreeing on its fair value.

According to their consensus, the company has a significant upside to fair value, with a price target of $62.79 per share.

This suggests that the stock has room for growth, and investors may want to consider taking a closer look at Academy Sports and Outdoors.

Growth and Value

Academy Sports and Outdoors has a significant upside to fair value, with a consensus among 19 analysts of 23.5% growth potential.

According to their estimates, the fair value of the company's stock is $62.79 per share, which indicates a substantial increase from its current price.

Earnings Growth

Credit: youtube.com, The Right Way to Find Growth and Value Stocks

Academy Sports and Outdoors has seen a decline in earnings per share, falling from $7.10 to $6.48 to $6.07 over the past three fiscal years.

Their earnings per share have been decreasing for three consecutive quarters, with the most recent quarter reporting $0.92.

Here's a breakdown of their earnings per share over the past few years:

Their revenue has also been decreasing, from $6.5B to $6.1B over the past two fiscal years.

Outdoors Return vs. S&P

Academy Sports And Outdoors has had a significant return over the long term, with a 300% increase since its IPO.

In comparison, the S&P 500 has seen a more modest 79% increase over the same period.

A closer look at the 5-year performance of Academy Sports And Outdoors shows a lack of consistency, with a -26.60% return over the past year.

On the other hand, the S&P 500 has consistently outperformed the market, with a 91.99% return over the past 5 years and a 13.93% annualized return.

Here's a comparison of the two stocks' performance over the past 5 years:

It's worth noting that Academy Sports And Outdoors has underperformed the S&P 500 over the past 5 trading days, with a -3.58% return.

Share Buyback

Credit: youtube.com, Stock Buybacks Balancing Shareholder Value and Long Term Growth

Academy Sports and Outdoors has a share repurchase program in place, which can impact share price. This program typically results in a higher earnings per share when the share count drops.

A share buyback program can have a significant effect on a company's financials. In the case of Academy Sports and Outdoors, their buyback program is likely to increase their earnings per share.

A buyback program can also be a sign of a company's confidence in their future earnings. By reducing the number of shares outstanding, they can potentially boost their stock price.

Here's a brief summary of the benefits of a share buyback program:

  • Results in a higher earnings per share

Under-the-Radar Growth Stock

If you're looking for an under-the-radar growth stock, consider Academy Sports and Outdoors. It's a market-beating stock with a cheap valuation.

This company has something that its competitors may not. Academy Sports and Outdoors is the newest public company in its industry.

Sold After Understanding

Academy Sports & Outdoors faces challenges with profitability and sales growth, despite boasting industry-leading metrics and expansion potential.

Credit: youtube.com, Academy Stock, $ASO Gamma Squeeze After The Short Squeeze.. ASO Stock Now Will Gamma Squeeze

The company's Q3 2024 earnings show declines in net sales and net income, which is a significant concern for investors.

Academy Sports & Outdoors has a strong presence in the market, but its ability to maintain profitability is uncertain.

The decline in net sales and net income indicates that the company's growth strategy may not be working as expected.

Expansion potential is still there, but it's not enough to offset the challenges with profitability and sales growth.

The industry-leading metrics are a positive sign, but they don't necessarily translate to financial success.

Investors should be cautious when considering Academy Sports & Outdoors stock, given the company's current challenges.

It's essential to weigh the pros and cons before making a decision, considering both the company's strengths and weaknesses.

Frequently Asked Questions

Is Academy publicly traded?

Yes, Academy is publicly traded, listed on the Nasdaq Global Select Market under the ticker symbol "ASO" since its Initial Public Offering in 2020. This made Academy an independent company in 2021.

Wilbur Huels

Senior Writer

Here is a 100-word author bio for Wilbur Huels: Wilbur Huels is a seasoned writer with a keen interest in finance and investing. With a strong background in research and analysis, he brings a unique perspective to his writing, making complex topics accessible to a wide range of readers. His articles have been featured in various publications, covering topics such as investment funds and their role in shaping the global financial landscape.

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