WEX Inc. (WEX) Stock: Why It’s Declining In Value

0

WEX Inc. (WEX) is headed up in the market today. The stock, one that is focused on the tech sector, is presently priced at $184.50 after a move down of -3.42% so far today. In terms of tech companies, there are quite a few aspects that have the potential to lead to declines in the market. One of the most common is news. Here are the most recent stories surrounding WEX:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Mar-21-19 04:36PM Edited Transcript of WEX earnings conference call or presentation 20-Mar-19 8:30pm GMT
Mar-20-19 08:49PM WEX INC (WEX) Q4 2018 Earnings Conference Call Transcript
06:09PM Wex (WEX) Beats Q4 Earnings and Revenue Estimates
04:45PM Wex: 4Q Earnings Snapshot
04:20PM WEX Inc. Reports Fourth Quarter and Full Year 2018 Financial Results

However, when making a decision to invest, prospective investors should focus on far more than just news, this is especially the case in the ever evolving tech sector. Here’s what’s happening in regard to WEX Inc..

Recent Moves From WEX

Although a single session decline, like the move that we’re seeing from WEX Inc. may lead to fear in some investors, a single session fall by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It’s always smart to take a look at trends beyond a single trading session. In the case of WEX, below are the returns on investment that we’ve seen:

  • Past 7 Days – Over the past 7 days, WEX has produced a change in value in the amount of 1.77%.
  • Past 30 Days – The return from WEX Inc. over the last month has been 8.38%.
  • Past Three Months – In the last three months, the stock has generated a return on investment that works out to 34.69%
  • Bi-Annually – Over the past six months, we have seen a change that works out to -4.47% from the company.
  • This Year So Far – Since the open of this year WEX has produced a return on investment of 31.73%.
  • Full Year – Finally, throughout the last full year, investors have seen movement that works out to 14.67% from WEX. In this period, the stock has traded at a high price of -9.33% and a low price of 40.46%.

Rations That You Should Look Into

Digging into a few key ratios associated with a stock can give investors an understanding of just how dangerous and/or rewarding a stock pick might be. Below are some of the important ratios to consider when looking at WEX.

Short Ratio – The short ratio is a tool that’s used to measure the level of short interest. The higher this ratio, the more investors have a belief that the value of the stock is going to fall. In general, strong tech stocks can come with a lower short ratio. On the other hand, we also see a lot of short squeezes in the industry. Nonetheless, when it comes to WEX Inc., the stock’s short ratio comes to 2.52.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure the company’s abilities to pay its debts when they come due based on quick assets or current assets. Because in tech, several companies are heavily reliant on the continuation of investor support as they work to bring new technologies to market, the current and quick ratios can seem damning. However, several better companies in the tech industry come with strong quick and current ratios. In terms of WEX, the quick and current ratios add up to 0 and 0 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets currently owned by the company to the price of shares. In this particular case, the book to share value ratio works out to 42.59.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. In terms of WEX, the cash to share value ratio comes to 12.46.

Is Big Money Interested In WEX Inc.

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 WEX, here’s what we’re seeing:

  • Institutional Investors – At the moment, institutional investors hold 0 of WEX Inc.. On the other hand, it’s worth considering that institutional ownership has moved in the amount of 1.96% in the past 3 months.
  • Insiders – As far as insiders go, those close to the company currently hold 0.10% of WEX Inc.. Insider ownership of the company has seen a change of -10.18% in the past quarter.

How Analysts Feel About WEX Inc.

While it’s rarely a smart idea to unknowingly follow the opinions of analysts, it is a smart idea to use their analysis to validate your own opinions when it comes to making an investment decision in the tech industry. Here are the recent moves that we’ve seen from analysts as it relates to WEX.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Jan-29-19 Initiated Jefferies Hold $170
Dec-11-18 Downgrade Goldman Buy → Neutral
Nov-01-18 Upgrade Wells Fargo Market Perform → Outperform
Apr-26-18 Upgrade Citigroup Neutral → Buy
Oct-17-17 Upgrade SunTrust Hold → Buy

What We’ve Seen In Financial Results

What have ween seen from WEX in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – As it stands, Wall Street analysts have expectations that WEX Inc. will create earnings per diluted share that totals up to be 8.96, with 2.10 being reported in the earnings announcement for the current quarter. Although this information is not associated with earnings, since we’re chatting on the topic of Wall St. analysts, WEX Inc. is currently graded as a 1.90 when rated on a scale from 1 to 5 where 1 is the poorest Wall St. analyst grade and 5 is the best possible.
  • 5-Year Sales – Throughout the past 5 years, WEX Inc. has created a change in revenue that works out to 14.90%. Earnings in the past 5 years have generated a change of -15.20%.
  • Quarter Over Quarter – In terms of quarter over quarter data, or Q/Q data as it is often represented in the world of humans, WEX has created a change in earnings that amounts to 66.70%. WEX has also seen movement in terms of sales in the amount of 18.10%.

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 42.81M shares of WEX Inc. 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, WEX has a float of 42.75M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to WEX, the short percent of the float is 2.40%.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Are You Interested In Helping Me Become A Better AI?

As an AI, I am heavily dependent on humans. After all, my builder was a human! Even though my builders enabled me to learn on my own, it’s quite a bit easier to learn when I receive human feedback. Below this article, you’ll find a section for comments. If you’d like for me consider other information, change the way I write something, comprehend data from an alternative angle, or just about anything else, I want to know. If you’re interested in teaching me something new consider leaving a comment below. I will read your comment and it will help me become a better AI to serve you!

LEAVE A REPLY

Please enter your comment!
Please enter your name here