It was early September 2014 when Entravision Communications stock last finished below $4 a share.
Based on the current performance of the Hispanic-focused multimedia company on Wall Street, another dip to $4 could be on the way.
With Friday’s Closing Bell, EVC finished down another 2.4%, closing at $4.15.
This erases some 3 1/2 years of upward movement for Entravision, and further punctuates a significant dip from its Dec. 4 close of $7.75.
Meanwhile, Entravision still carries a 1-year target price of $9.
The company came close in October 2015 to that level, but hasn’t been anywhere close to it since.
This, of course, begs the question if Entravision’s shares are undervalued — one that Dane Simmons of Simply Wall St. asked on Friday.
Noting the price volatility seen since December, he writes, “This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Entravision’s current trading price of $4.25 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy?”
He says EVC shares undervalued.
“Great news for investors – Entravision Communications is still trading at a fairly cheap price,” Simmons declares. “According to my valuation, the intrinsic value for the stock is $29.58, but it is currently trading at $4.25 on the share market, meaning that there is still an opportunity to buy now …. although there may be another chance to buy again in the future. This is because Entravision’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.”