Introduction
Smile Direct Club is a company that focuses on providing clear aligners to individuals who want to straighten their teeth. The company was founded in 2014 and began to offer its services in 2015. Since then, Smile Direct Club has grown rapidly, becoming the world's largest teledentistry platform and providing orthodontic treatments to more than one million customers in over 40 countries. In September 2019, Smile Direct Club went public and its stock has been trading on the Nasdaq Stock Exchange since then.
History of Smile Direct Club Stock
Smile Direct Club stock began trading on the Nasdaq Stock Exchange on September 12, 2019, under the ticker symbol SDC. The company initially offered 36 million shares, at a price of $23 per share. The offering was a huge success and the stock quickly rose, reaching a peak of $24.75 per share the same day. Since then, the stock has had a roller-coaster ride, with the price dropping as low as $4.36 per share in October 2019 and rising back above $20 per share in February 2020.
Overview of Smile Direct Club Stock
Smile Direct Club stock has seen a lot of volatility since its IPO in 2019. The stock is currently trading at around $18.50 per share and has a market capitalization of approximately $3.3 billion. The company's stock has a price-to-earnings ratio of -59.09, which means that investors are paying $59.09 for every $1 of earnings. The company also has a price-to-sales ratio of 8.37 and a price-to-book ratio of 6.73.
The Future of Smile Direct Club Stock
Smile Direct Club has seen a lot of growth in the past few years and the future looks bright for the company. The company is continuing to invest in its teledentistry platform, which is expected to drive growth in the coming years. Additionally, the company is expanding its product offerings to include oral care products, such as toothbrushes and toothpaste. These products are expected to drive even more growth for the company. As such, investors are optimistic about the future of Smile Direct Club stock.
Factors to Consider When Investing in Smile Direct Club Stock
When investing in Smile Direct Club stock, investors should consider a number of factors. First, the stock is still relatively new and there is a high level of volatility in the stock price. Additionally, the company is heavily reliant on its teledentistry platform, which could be disrupted by new technologies or competition. Finally, the company is still unprofitable and investors should be aware of the risks associated with investing in a loss-making company.
Conclusion
Smile Direct Club stock is an attractive investment for investors who are looking for exposure to a fast-growing teledentistry platform. The stock has seen a lot of volatility since its IPO, but the company's growth prospects are strong and the future looks bright. However, investors should be aware of the risks associated with investing in a new and unprofitable company. By considering these factors, investors can make an informed decision when investing in Smile Direct Club stock.
