Huami Corporation (HMI) Stock: A Technology Stock That’s Seeing Strong Declines

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Huami Corporation (HMI) is making a move down in the market in today’s trading session. The company, one that is focused in the tech industry, is presently priced at $14.44 after tumbling -6.36% so far in today’s session. When it comes to technology stocks, there are several aspects that have the potential to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines centered around HMI:

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Mar-18-19 01:44PM Is Huami Corporation (NYSE:HMI) A High Quality Stock To Own?
Mar-17-19 04:10PM Forget Fitbit: Huami Is a Better Wearables Stock
Mar-15-19 05:42PM Edited Transcript of HMI.N earnings conference call or presentation 14-Mar-19 12:00pm GMT
Mar-14-19 12:13PM Huami Corporation (HMI) Q4 2018 Earnings Conference Call Transcript
05:00AM Huami Corporation Reports Fourth Quarter and Full Year 2018 Unaudited Financial Results

Nonetheless, when making a decision to invest, prospective investors should look at much more than news, especially in the ever evolving tech space. Here’s what’s happening in regard to Huami Corporation.

Recent Moves From HMI

Although a decline in a single session, like the fall that we’re seeing from Huami Corporation might cause fear in some investors, a single session fall alone should not be the reason for a decision to, or not to, invest in a company. It’s always smart to take a look at trends experienced by the stock just a single trading day. In the case of HMI, below are the returns that we’ve seen:

  • Past 5 Trading Sessions – In the last week, HMI has generated a change in price amounting to -5.31%.
  • Monthly – The return from Huami Corporation throughout the last 30 days comes to 5.71%.
  • Quarterly – Over the past quarter, the company has produced a return on investment that works out to 36.36%
  • Bi-Annually – Throughout the last 6 months, we’ve seen a change that amounts to 47.50% from the company.
  • Year To Date – Since the close of last year HMI has generated a return on investment of 46.90%.
  • Full Year – Finally, throughout the past full year, we have seen performance in the amount of 33.46% from HMI. Over this period of time, the stock has traded at a high price of -26.55% and a low of 71.29%.

Notable Ratios

Looking at various ratios associated with a company can give investors a view of just how dangerous and/or potentially profitable a pick may be. Here are a few of the important ratios to consider when looking at HMI.

Short Ratio – The short ratio is a measure of short interest. As the ratio goes higher, it means that more investors are expecting that the value of the stock is going to go down. In general, strong tech stocks can come with a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the space. Nonetheless, when it comes to Huami Corporation, the stock’s short ratio clocks in at 1.25.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Basically, they measure If a company is able to pay for its debts when they mature with only current assets or quick assets. Because in tech, several companies are heavily reliant on continued support from investors as they work to bring new technologies to market, the current and quick ratios can seem upsetting. However, some good picks in the technology industry come with strong quick and current ratios. In terms of HMI, the quick and current ratios come to 1.90 and 2.30 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets currently owned by the company to the share price of the stock. In this case, the book to share value ratio is 4.31.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. In this case, the cash to share value comes to 3.42.

Big Money And Huami Corporation

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in HMI, here’s what we’re seeing:

  • Institutions – Currently, institutional investors hold 95.90% of the company. However, it is worth considering that the ownership held by institutions has moved in the amount of 0.12% throughout the last quarter.
  • Insider Moves – When it comes to insiders, those close to the situation currently own 9.04% of Huami Corporation. Their ownership of the company has seen a change of 0 throughout the last 3 months.

What Analysts Say About Huami Corporation

While it’s never a smart idea to blindly follow the thoughts of analysts, it is a good idea to consider their thoughts to validate your own thoughts before making investment decisions in the technology industry. Below are the recent moves that we’ve seen from analysts with regard to HMI.

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What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $1.59. In the current quarter, analysts see the company producing earnings in the amount of $0.19. Over the last 5 years, HMI has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 780.60% and revenue has seen movement of 126.70%.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 56.79M shares of Huami Corporation outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, HMI has a float of 9.90M.

I also like to follow the short float. Think about it, if a large percentage of the float available for trading is sold short, the overall opinion in the market is that the stock is headed for a dive. As far as HMI, the percentage of the float that is shorted is 2.64%. In general, high short percent of the float is any percentage over 40%. Nonetheless, I have calculated that any short percent of the float over 26% is generally a play that comes with hefty risk.

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