Facebook, Inc. (FB) Stock: A Technology Stock That’s Making Its Way For The Top

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Facebook, Inc. (FB) is making a move up in the market in today’s trading session. The company, one that is focused in the tech industry, is currently priced at $164.34 after climbing -1.05% so far today. In terms of tech companies, there are a number of factors that have the ability to lead to gains in the market. News is one of the most common reasons for movement. Here are the recent stories centered around FB:

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Mar-22-19 06:33PM A Beginner’s Guide to Buying Facebook Stock
05:44PM Amid Bay Area exodus, some companies rush into region
05:20PM Pinterest’s IPO filing shows how dependent websites and apps have become on Google and Facebook
05:05PM Here’s what happened when Frank Gehry met Mark Zuckerberg to discuss Building X
04:36PM 3 Blue-Chip Stocks to Buy Right Now

Nonetheless, any time investors are making an investing decision, investors should take a look at much more than just news, this is especially the case in the ever changing tech space. Here’s what’s happing when it comes to Facebook, Inc..

Trends That We’ve Seen From FB

While a move toward the top in a single session, like the move that we’re seeing from Facebook, Inc. might lead to excitement in some investors, a single session gain alone shouldn’t be the reason for a decision to, or not to, invest in a company. It’s always important to look into trends experienced by the stock further out than a single trading day. When it comes to FB, here are the returns that we’ve seen:

  • Past 5 Sessions – Throughout the past 5 trading sessions, FB has seen a change in value in the amount of -0.99%.
  • Past Month – The monthly ROI from Facebook, Inc. works out to 2.69%.
  • Past Three Months – In the last 3 months, the stock has produced a return of 23.34%
  • Bi-Annually – Over the last six months, we have seen a performance of 0.78% from the company.
  • This Year So Far – Since the close of last year FB has resulted in a ROI of 25.36%.
  • Full Year – Finally, throughout the past year, we have seen a change amounting to -2.98% from FB. Throughout this period, the stock has sold at a high price of -24.83% and a low price of 33.59%.

Key Ratios

Looking at a few ratios associated with a stock can provide investors an understanding of how risky and/or rewarding a stock pick might be. Here are a few of the most important ratios to think about when looking at FB.

Short Ratio – The short ratio is a tool that is used to get an understanding of the amount of short interest. As the short ratio heads up, it shows that more investors believe that the price of the stock is going to go down. Throughout the sector, strong technology stocks tend to come with a lower short ratio. However, we also tend to see quite a few short squeezes in the industry. Nonetheless, as it relates to Facebook, Inc., the stock’s short ratio clocks in at 1.00.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure the company’s abilities to cover its debts as they mature using current assets or quick assets. Because in tech, companies rely heavily on continued support from investors as they work to bring new technologies to market, the quick and current ratios can seem upsetting. However, some better companies in the tech sector come with good quick and current ratios. As it relates to FB, the quick and current ratios work out to 7.20 and 7.20 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the share price of the stock. when it comes to Facebook, Inc., the book to share value ratio works out to 29.26.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of shares. In this case, the cash to share value ratio is 14.05.

What Institutions And Insiders Think Of Facebook, 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 FB, here’s what we’re seeing:

  • Institutional Investors – Currently, institutional investors own 74.70% of Facebook, Inc.. On the other hand, it is important to mention that the ownership held by institutions has moved in the amount of 1.94% over the past 3 months.
  • Insiders – As far as insiders go, those close to the company currently own 1.28% of the company. Their ownership of the company has moved -2.34% in the last 3 months.

How Analysts Feel About Facebook, Inc.

Although it’s never a smart idea to blindly follow the opinions of analysts, it is a smart idea to use their thoughts to validate your own before making investment decisions in the tech industry. Below are the most recent moves that we’ve seen from analysts when it comes to FB.

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Mar-18-19 Downgrade Needham Buy → Hold
Mar-11-19 Upgrade Nomura Neutral → Buy $172 → $215
Jan-31-19 Reiterated UBS Neutral $160 → $170
Jan-31-19 Reiterated Rosenblatt Buy $206 → $212
Jan-31-19 Reiterated RBC Capital Mkts Outperform $190 → $200

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $8.87. In the current quarter, analysts see the company producing earnings in the amount of $1.63. Over the last 5 years, FB has generated revenue in the amount of $48.00% with earnings coming in at 66.30%. On a quarter over quarter basis, earnings have seen movement of 7.80% and revenue has seen movement of 30.40%.

Float Information

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 2.93B shares of Facebook, 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, FB has a float of 2.35B.

It’s also important to dig into the short percentage of the float. After all, when a high percentage of the float available for trading is shorted, the overall opinion among investors is that the company is headed for a deep dive. With regard to FB, the short percentage of the float totals up to 0.91%. In general, concerning short percent of the float is any percentage over 40%. Nonetheless, I have calculated that a short ratio over 26% is usually a play that comes with hefty risk.

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