Ingevity's stock's poor performance over the past year and the annualized loss of 9% over the last half decade may indicate unresolved challenges. Contrarian investors might research the stock in hope of a turnaround.
The lack of Ingevity insider buying and not particularly high level of insider ownership do not provide much encouragement. Be aware of the risks facing this company.
Ingevity's respectable ROE may be misleading due to high debt usage, potentially increasing future risk. High ROE doesn't always signify profitability, especially with high debt. Future profit growth and required investment should also be considered.
Ingevity's earnings are contracting and expected to fall more, explaining its low P/E ratio. There's potential for lower P/E if profitability doesn't improve, making a significant share price rise hard to foresee.
Ingevity seems to be undervalued considering its optimistic future profit outlook. Entering or adding holdings could be beneficial, yet investors should also weigh in factors such as management performance and risk profiles.
Insiders offloading shares above current price does not reflect their view on it. However, disappointment arises due to a low ratio of insider ownership and a lack of recent insider purchases, disappointing for stock prospects.
Discrepancy between EPS and share price suggests changing market sentiment. Contrarian investors may explore, despite investment risks, hoping for a turnaround.
Ingevity Stock Forum
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