Last Updated: 14 Oct 2024
Executive Summary
Alliance Entertainment Holding Corporation (AENT) is a leading global wholesaler, distributor, and e-commerce provider for the entertainment industry. The company has a market capitalization of $129.89 million and a latest stock price of $2.55. AENT's financial performance has been mixed in recent quarters, with revenue declining slightly year-over-year but profitability improving. The company's stock price has been volatile in recent months, but it remains above its 52-week low.
Company Overview
AENT is headquartered in Plantation, Florida and has operations in over 20 countries. The company distributes a wide range of entertainment products, including DVDs, Blu-rays, video games, and music. AENT also provides e-commerce services to its customers. The company's customers include retailers, libraries, schools, and businesses.
Fundamental Analysis
AENT's financial performance has been mixed in recent quarters. Revenue declined by 0.041% year-over-year to $1100.48 million in the latest quarter. However, the company's profitability improved, with EBITDA increasing by 22.4% to $22.42 million. AENT's net income was $1.5 million, compared to a loss of $1.6 million in the same quarter last year.
AENT's balance sheet is relatively strong. The company has $172.3 million in cash and equivalents and $194.1 million in total debt. AENT's debt-to-equity ratio is 0.48, which is below the industry average.
Technical Analysis
AENT's stock price has been volatile in recent months. The stock price reached a 52-week high of $3.99 in January 2023 and a 52-week low of $0.651 in May 2023. The stock price is currently trading at $2.55, which is above its 50-day and 200-day moving averages.
The relative strength index (RSI) is a technical indicator that measures the momentum of a stock's price. The RSI is currently at 50, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
AENT's short-term outlook is mixed. The company's financial performance has been improving, but its stock price has been volatile. The stock price is currently trading above its moving averages, which is a positive sign. However, the RSI is at 50, which indicates that the stock is neither overbought nor oversold.
Long Term Outlook
AENT's long-term outlook is positive. The company is a leader in the entertainment distribution industry and has a strong balance sheet. The company's e-commerce business is growing rapidly, which should help to drive future revenue growth.
Analyst Recommendations
Analysts are generally positive on AENT. One analyst has a buy rating on the stock, while another has a hold rating. The average analyst target price is $6, which represents a potential upside of 134.5% from the current stock price.
