Is Local Bounti Stock a Good Investment?
Local Bounti Investment Advice | LOCL |
- Examine Local Bounti's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Local Bounti's leadership team and their track record. Good management can help Local Bounti navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Packaged Foods & Meats space and any emerging trends that could impact Local Bounti's business and its evolving consumer preferences.
- Compare Local Bounti's performance and market position to its competitors. Analyze how Local Bounti is positioned in terms of product offerings, innovation, and market share.
- Check if Local Bounti pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Local Bounti's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Local Bounti Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Local Bounti Corp is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Unstable | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Local Bounti Stock
Researching Local Bounti's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 56.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 0.46. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Local Bounti Corp recorded a loss per share of 18.11. The entity had not issued any dividends in recent years. The firm had 1:13 split on the 15th of June 2023.
To determine if Local Bounti is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Local Bounti's research are outlined below:
| Local Bounti Corp generated a negative expected return over the last 90 days | |
| Local Bounti Corp may become a speculative penny stock | |
| Local Bounti Corp has high historical volatility and very poor performance | |
| Local Bounti Corp has a very high chance of going through financial distress in the upcoming years | |
| The company reported the previous year's revenue of 27.56 M. Net Loss for the year was (124.02 M) with profit before overhead, payroll, taxes, and interest of 3.99 M. | |
| Local Bounti Corp currently holds about 4.23 M in cash with (33.16 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.04. | |
| Local Bounti Corp has a frail financial position based on the latest SEC disclosures | |
| Roughly 56.0% of the company outstanding shares are owned by corporate insiders | |
| Latest headline from news.google.com: Local Bounti Announces Third Quarter 2024 Financial Results - GuruFocus.com |
Local Bounti Quarterly Liabilities And Stockholders Equity |
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Local Bounti uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Local Bounti Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Local Bounti's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 3rd of April 2024 Upcoming Quarterly Report | View | |
| 8th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 3rd of April 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Local Bounti's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Local Bounti's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-11-10 | 2022-09-30 | -0.27 | -0.3 | -0.03 | 11 | ||
2023-03-29 | 2022-12-31 | -0.25 | -0.3 | -0.05 | 20 | ||
2022-08-15 | 2022-06-30 | -0.19 | -0.36 | -0.17 | 89 | ||
2022-05-09 | 2022-03-31 | -0.12 | -0.32 | -0.2 | 166 | ||
2022-03-15 | 2021-12-31 | -0.13 | -0.33 | -0.2 | 153 | ||
2024-05-09 | 2024-03-31 | -2.14 | -2.89 | -0.75 | 35 | ||
2023-08-09 | 2023-06-30 | -2.71 | -1.35 | 1.36 | 50 | ||
2024-11-08 | 2024-09-30 | -2.13 | -3.9588 | -1.8288 | 85 |
Know Local Bounti's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Local Bounti is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Local Bounti Corp backward and forwards among themselves. Local Bounti's institutional investor refers to the entity that pools money to purchase Local Bounti's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Global Retirement Partners, Llc. | 2024-09-30 | 3 K | Tower Research Capital Llc | 2024-06-30 | 1.8 K | Hanson Mcclain Inc | 2024-09-30 | 192 | Wells Fargo & Co | 2024-06-30 | 115 | Royal Bank Of Canada | 2024-06-30 | 114 | Bank Of America Corp | 2024-06-30 | 34.0 | Jpmorgan Chase & Co | 2024-06-30 | 20.0 | Capital Advisors, Ltd. Llc | 2024-06-30 | 16.0 | Van Eck Associates Corporation | 2024-06-30 | 0.0 | Cresset Asset Management, Llc | 2024-09-30 | 428.5 K | Vanguard Group Inc | 2024-09-30 | 186.7 K |
Local Bounti's market capitalization trends
The company currently falls under 'Micro-Cap' category with a current market capitalization of 14.45 M.Market Cap |
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Local Bounti's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.36) | (0.38) | |
| Return On Capital Employed | (0.33) | (0.35) | |
| Return On Assets | (0.32) | (0.34) | |
| Return On Equity | (8.12) | (7.71) |
Determining Local Bounti's profitability involves analyzing its financial statements and using various financial metrics to determine if Local Bounti is a good buy. For example, gross profit margin measures Local Bounti's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Local Bounti's profitability and make more informed investment decisions.
Evaluate Local Bounti's management efficiency
Local Bounti Corp has return on total asset (ROA) of (0.0996) % which means that it has lost $0.0996 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (4.252) %, meaning that it created substantial loss on money invested by shareholders. Local Bounti's management efficiency ratios could be used to measure how well Local Bounti manages its routine affairs as well as how well it operates its assets and liabilities. The value of Return On Tangible Assets is estimated to slide to -0.38. The value of Return On Capital Employed is expected to slide to -0.35. At this time, Local Bounti's Debt To Assets are quite stable compared to the past year. Asset Turnover is expected to rise to 0.08 this year, although the value of Other Assets will most likely fall to about 722 K.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.92 | 1.83 | |
| Tangible Book Value Per Share | (3.28) | (3.12) | |
| Enterprise Value Over EBITDA | (3.92) | (4.11) | |
| Price Book Value Ratio | 1.08 | 1.13 | |
| Enterprise Value Multiple | (3.92) | (4.11) | |
| Price Fair Value | 1.08 | 1.13 | |
| Enterprise Value | 333.5 M | 422 M |
Local Bounti showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Beta 2.515 |
Basic technical analysis of Local Stock
As of the 25th of November, Local Bounti secures the Risk Adjusted Performance of (0.11), standard deviation of 4.27, and Mean Deviation of 2.9. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Local Bounti Corp, as well as the relationship between them. Please verify Local Bounti Corp mean deviation, information ratio, as well as the relationship between the Information Ratio and potential upside to decide if Local Bounti Corp is priced some-what accurately, providing market reflects its recent price of 1.67 per share. Please also check out Local Bounti jensen alpha, which is currently at (0.79) to check the company can sustain itself at a future point.Local Bounti's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Local Bounti insiders, such as employees or executives, is commonly permitted as long as it does not rely on Local Bounti's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Local Bounti insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Local Bounti's Outstanding Corporate Bonds
Local Bounti issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Local Bounti Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Local bonds can be classified according to their maturity, which is the date when Local Bounti Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View |
Understand Local Bounti's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Local Bounti's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.85) | |||
| Mean Deviation | 2.9 | |||
| Coefficient Of Variation | (628.76) | |||
| Standard Deviation | 4.27 | |||
| Variance | 18.21 | |||
| Information Ratio | (0.19) | |||
| Jensen Alpha | (0.79) | |||
| Total Risk Alpha | (1.36) | |||
| Treynor Ratio | (0.86) | |||
| Maximum Drawdown | 26.64 | |||
| Value At Risk | (8.04) | |||
| Potential Upside | 4.78 | |||
| Skewness | 0.0764 | |||
| Kurtosis | 3.12 |
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.85) | |||
| Mean Deviation | 2.9 | |||
| Coefficient Of Variation | (628.76) | |||
| Standard Deviation | 4.27 | |||
| Variance | 18.21 | |||
| Information Ratio | (0.19) | |||
| Jensen Alpha | (0.79) | |||
| Total Risk Alpha | (1.36) | |||
| Treynor Ratio | (0.86) | |||
| Maximum Drawdown | 26.64 | |||
| Value At Risk | (8.04) | |||
| Potential Upside | 4.78 | |||
| Skewness | 0.0764 | |||
| Kurtosis | 3.12 |
Consider Local Bounti's intraday indicators
Local Bounti intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Local Bounti stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Local Bounti time-series forecasting models is one of many Local Bounti's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Local Bounti's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Local Stock media impact
Far too much social signal, news, headlines, and media speculation about Local Bounti that are available to investors today. That information is available publicly through Local media outlets and privately through word of mouth or via Local internal channels. However, regardless of the origin, that massive amount of Local data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Local Bounti news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Local Bounti relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Local Bounti's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Local Bounti alpha.
Local Bounti Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Local Bounti can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Local Bounti Corporate Management
| Kathleen Valiasek | Chief Officer | Profile | |
| Mark McKinney | Chief Officer | Profile | |
| Margaret McCandless | General Secretary | Profile | |
| Bimal Patel | Chief Officer | Profile | |
| Gary Hilberg | Chief Officer | Profile | |
| Brian Cook | President | Profile | |
| David Vosburg | Chief Officer | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Local Bounti Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Is Packaged Foods & Meats space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Local Bounti. If investors know Local will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Local Bounti listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (18.11) | Revenue Per Share 3.835 | Quarterly Revenue Growth 0.315 | Return On Assets (0.1) | Return On Equity (4.25) |
The market value of Local Bounti Corp is measured differently than its book value, which is the value of Local that is recorded on the company's balance sheet. Investors also form their own opinion of Local Bounti's value that differs from its market value or its book value, called intrinsic value, which is Local Bounti's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Local Bounti's market value can be influenced by many factors that don't directly affect Local Bounti's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Local Bounti's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Local Bounti is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Local Bounti's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.