SecureWorks Corp. (SCWX) Stock: A Strong Pick In The technology Industry?


SecureWorks Corp. (SCWX) is headed up in the market today. The stock, focused in the technology space, is currently trading at $18.09 after a move down of -5.29% so far in today’s session. As it relates to tech stocks, there are a number of factors that have the ability to lead to movement in the market. News is one of the most common reasons for movement. Here are the recent trending headlines associated with SCWX:

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Apr-04-19 03:00PM 5 Cybersecurity Stocks to Watch As the Trend Heats Up
Apr-01-19 08:32PM Edited Transcript of SCWX earnings conference call or presentation 27-Mar-19 12:00pm GMT
Mar-28-19 10:48PM SecureWorks Corp (SCWX) Files 10-K for the Fiscal Year Ended on January 31, 2019
10:23AM SecureWorks Has Limited Upside, KeyBanc Says After Q4 Print
Mar-27-19 02:43PM SecureWorks Corp. (SCWX) Q4 2018 Earnings Conference Call Transcript

Nonetheless, when making a decision with regard to investing, prospective 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 happening in regard to SecureWorks Corp..

The Performance That We’ve Seen From SCWX

Although a single session decline, like what we’re seeing from SecureWorks Corp. might lead to fear in some investors, that by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It is generally a good idea to dig into trends beyond a single session. When it comes to SCWX, below are the movements that we’ve seen:

  • Past Seven Days – Over the last seven days, SCWX has produced a change in value in the amount of 2.61%.
  • Monthly – The return on investment from SecureWorks Corp. in the past 30 days comes to -5.29%.
  • Past Quarter – Over the last 3 months, the stock has produced a return on investment that works out to 11.12%
  • Past Six Months – Over the previous six months, we have seen a performance that amounts to 33.51% from the stock.
  • This Year So Far – Since the open of this year SCWX has resulted in a ROI of 7.10%.
  • Full Year – Lastly, throughout the past full year, investors have seen movement in the amount of 118.74% from SCWX. In this period of time, the stock has traded at a high price of -27.38% and a low price of 128.99%.

Ratios Worth Paying Attention To

Looking at various key ratios associated with a stock can give investors a look of just how dangerous and/or rewarding a an investment option may be. Below are a few of the key ratios to consider when looking at SCWX.

Short Ratio – The short ratio is a measure of short interest. As the ratio goes higher, it shows that more investors have a belief that the value of the stock is headed for declines. Across the sector, strong tech stocks tend to come with a lower short ratio. However, we also tend to see a lot of short squeezes in the sector. Nonetheless, with regard to SecureWorks Corp., it’s short ratio amounts to 10.30.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Basically, they measure the company’s abilities to cover its debts when they mature based on quick assets or current assets. In the tech sector, many companies rely heavily on continued support from investors as they work to bring new technologies to market, the current and quick ratios can look upsetting. Nonetheless, several better companies in the technology industry do have positive current and quick ratios. When it comes to SCWX, the quick and current ratios come to 1.10 and 1.10 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets owned by the company. In this particular case, that ratio comes in at 8.60.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of the company’s stock. In the case of SCWX, the cash to share value comes to 1.66.

What Are Big Money Players Doing With SecureWorks Corp.

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 SCWX, here’s what we’re seeing:

  • Institutional Investors – Currently, institutional investors hold 76.30% of SecureWorks Corp.. On the other hand, it’s important to consider that institutional ownership has seen a move of 1.66% in the last quarter.
  • Insider Moves – As far as insiders go, insiders of the company currently own 9.10% of SecureWorks Corp.. Their ownership of the company has changed by 0.00% in the past quarter.

How Analysts Feel About SecureWorks Corp.

Although it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their opinions to validate your own thoughts before making an investment decision in the technology industry. Below are the recent moves that we’ve seen from analysts as it relates to SCWX.

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Feb-05-19 Reiterated BofA/Merrill Underperform $10.50 → $12.50
Dec-07-18 Reiterated BofA/Merrill Underperform $9 → $10.50
Dec-07-18 Downgrade RBC Capital Mkts Outperform → Sector Perform
Dec-07-18 Downgrade First Analysis Sec Outperform → Neutral $14 → $17
Dec-06-18 Downgrade KeyBanc Capital Mkts Overweight → Sector Weight

Financial Results And Expectations

What have ween seen from SCWX in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – Currently, Wall St. analysts are expecting that SCWX will generate EPS coming to a total of 0.01, with -0.05 being announced in the report for the current quarter. Although this is not associated with earnings, because we’re chatting on the topic of Wall St. analysts, the stock is currently graded as a 3.10 considering a scale that ranges from 1 to 5 on which 1 is the poorest possible Wall St. analyst grade and 5 is the best possible rating.
  • 5-Year Sales – Over the past 5 years, SecureWorks Corp. has created a change in sales volume in the amount of 20.30%. EPS through the period have generated movement in the amount of 2.60%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is often referred to as in today’s society, SCWX has generated a earnings change by -162.00%. SecureWorks Corp. has also experienced movement in regard to sales that totals 8.10%.

Interested In How Many Shares Are Available?

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 78.28M shares of SecureWorks Corp. 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, SCWX has a float of 10.02M.

It’s also important to dig into the short float. After all, when a high percentage of the float is shorted, the overall opinion among investors is that the stock is headed for a dive. In regard to SCWX, the percentage of the float that is shorted currently sits at 30.44%. Most investors would say that a high short percent of the float is any percentage over 40%. Through my work, I have calculated that a short ratio over 26% is usually a play that comes with hefty risk.

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