Smith Micro Software, Inc. (SMSI) Stock: A Technology Stock That’s Falling


Smith Micro Software, Inc. (SMSI) is falling in the market today. The stock, one that is focused on the technology space, is presently priced at $2.81 after falling -1.75% so far in today’s session. In terms of tech stocks, there are a number of aspects that have the ability to lead to price movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines centered around SMSI:

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Mar-15-19 09:44PM Edited Transcript of SMSI earnings conference call or presentation 13-Mar-19 8:30pm GMT
Mar-13-19 04:05PM Smith Micro Reports Fourth Quarter and Fiscal Year 2018 Financial Results
Mar-11-19 06:30AM Smith Micro to Participate in 31st Annual ROTH Capital Partners Conference March 18 – 19
Mar-07-19 06:30AM Smith Micro Schedules Teleconference to Discuss Fourth Quarter and Fiscal Year 2018 Financial Results
Feb-25-19 12:00AM Smith Micro Introduces ViewSpotTM Platform for Improving the Mobile Device Demo Experience in Retail Stores

Nonetheless, when making an investing decision, prospective investors should look into much more than news, this is especially the case in the ever changing technology space. Here’s what’s happing when it comes to Smith Micro Software, Inc..

How SMSI Has Been Trending

While a single session decline, like the move that we’re seeing from Smith Micro Software, Inc. may cause fear in some investors, a single session move by itself shouldn’t be the basis of a decision to, or not to, invest in a company. It’s generally important to dig into trends experienced by the stock just a single trading session. In the case of SMSI, here are the returns that investors have seen:

  • Past 5 Trading Sessions – Throughout the last seven days, SMSI has generated a change in value amounting to 18.07%.
  • Monthly – The monthly ROI from Smith Micro Software, Inc. has been 47.89%.
  • Quarterly – Throughout the last quarter, the stock has generated a return on investment of 43.37%
  • Bi-Annually – Over the past 6 months, we’ve seen a performance that works out to 6.44% from the company.
  • YTD – Since the close of last year SMSI has produced a return on investment of 56.11%.
  • Annually – Finally, throughout the last year, investors have seen movement that works out to 56.11% from SMSI. In this period of time, the stock has traded at a high of -3.10% and a low price of 86.09%.

Key Ratios

Looking at a few ratios associated with a company can give traders a view of how risky and/or potentially profitable a stock pick may be. Here are some of the key ratios to think about when digging into SMSI.

Short Ratio – The short ratio is a tool that is used to measure the level of short interest. The higher this short ratio, the more investors have a belief that the price of the stock is headed for declines. Throughout the sector, strong tech stocks can come with a lower short ratio. However, we also see quite a few short squeezes in the space. Nonetheless, as it relates to Smith Micro Software, Inc., the stock’s short ratio amounts to 10.28.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure the company’s abilities to pay for its debts when they mature based on quick assets or current assets. In the technology sector, companies are reliant on continued investor support as they work to bring new technologies to market, the current and quick ratios can be upsetting. However, several good picks in the tech sector come with good current and quick ratios. When it comes to SMSI, the quick and current ratios total up to 0 and 4.40 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price. In the case of Smith Micro Software, Inc., that ratio equates to 0.13.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of the company’s stock. In this case, the cash to share value ratio works out to 0.27.

Investors Tend To Follow The Big Money

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 SMSI, here’s what we’re seeing:

  • Institutions – As it stands now, institutional investors hold 10.40% of Smith Micro Software, Inc.. On the other hand, it’s worth considering that the ownership held by institutions has changed in the amount of -11.65% over the past quarter.
  • Insider Moves – When it comes to insiders, those close to the company currently hold 16.30% of Smith Micro Software, Inc.. Insider ownership of the company has seen a move of 0.00% in the past 3 months.

What Analysts Say About Smith Micro Software, Inc.

Although it’s rarely a good idea to blindly follow the opinions of analysts, it is a good idea to consider their analysis in order to validate your own before making investment decisions in the technology industry. Here are the recent moves that we’ve seen from analysts as it relates to SMSI.

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Oct-19-15 Downgrade Needham Buy → Hold
Feb-25-15 Upgrade Needham Hold → Buy $2.10
Jan-07-15 Upgrade H.C. Wainwright Neutral → Buy $2
Jul-18-14 Initiated H.C. Wainwright Neutral
May-05-11 Downgrade Needham Buy → Hold

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.18. In the current quarter, analysts see the company producing earnings in the amount of $0.01. Over the last 5 years, SMSI has generated revenue in the amount of $-11.90% with earnings coming in at 29.50%. On a quarter over quarter basis, earnings have seen movement of 66.40% and revenue has seen movement of 12.10%.

What’s Going On With 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 31.22M shares of Smith Micro Software, 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, SMSI has a float of 20.24M.

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 SMSI, the short percent of the float is 9.00%.

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