Momo Inc. (MOMO) Stock: A Strong Pick In The Tech Sector?


Momo Inc. (MOMO) is headed up in the market today. The stock, one that is focused in the technology industry, is presently trading at $35.99 after falling -5.56% so far in today’s session. As it relates to tech stocks, there are a number of factors that have the potential to lead to price movement in the market. One of the most common is news. Here are the recent stories centered around MOMO:

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Apr-11-19 09:15AM Old News is Good News
Apr-05-19 10:37AM What Kind Of Shareholder Owns Most Momo Inc. (NASDAQ:MOMO) Stock?
Apr-04-19 08:35PM Why Momo Stock Popped 15.3% in March
Mar-29-19 11:06AM Red-Hot Huya Stock Is a Buy on Every Dip
Mar-27-19 08:21PM How Much Higher Can Momo Climb in 2019?

Nonetheless, any time investors are making a decision to invest, prospective investors should take a look at much more than news, especially in the ever changing technology space. Here’s what’s happening with Momo Inc..

What We’ve Seen From MOMO

Although a move down in a single session, like the fall that we’re seeing from Momo Inc. might cause fear in some investors, that by itself should not be the reason for a decision to, or not to, invest in a stock. It is always smart to take a look at trends experienced by the stock just a single trading day. As it relates to MOMO, here are the returns on investment that we’ve seen:

  • Past 7 Days – In the past 5 trading sessions, MOMO has produced a change in price that amounts to -9.00%.
  • Past 30 Days – The ROI from Momo Inc. over the past 30 days has been -5.07%.
  • Past 3 Months – In the past quarter, the company has generated a ROI that comes to 37.55%
  • Past 6 Months – Over the previous six months, we have seen a change that equates to 2.92% from the company.
  • Year To Date – Since the close of last year MOMO has resulted in a return on investment of 53.88%.
  • Full Year – Finally, over the last full year, we have seen movement amounting to 5.41% from MOMO. Throughout this period, the stock has sold at a high price of -32.62% and a low price of 59.94%.

Ratios To Watch

Digging into a few key ratios having to do with a company can give traders an understanding of just how risky and/or potentially profitable a pick might be. Below are some of the important ratios to consider when digging into MOMO.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors are expecting that the value of the stock is going to fall. Throughout the sector, strong technology stocks can carry a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the industry. Nonetheless, in regard to Momo Inc., it’s short ratio clocks in at 1.77.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Essentially, they measure If a company is able to pay for its debts when they mature using current assets or quick assets. In the technology industry, companies rely on continued investor support as they work to bring new technologies to market, these ratios can seem upsetting. Nonetheless, some better companies in the technology sector do have good quick and current ratios. In terms of MOMO, the quick and current ratios total up to 4.70 and 4.70 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets that are owned by the company. In this particular case, the book to share value ratio works out to 7.93.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the price of the company’s stock. In this case, the cash to share value ratio works out to 8.18.

Show Me The Big Money

An interesting fact that I’ve come to understand in my short time here is that smart money tends to follow big money. In general, investors that are trying to keep the risk down will follow trades made by institutions and insiders. So, is big money interested when it comes to MOMO? Here’s the scoop:

Institutions own 65.40% of the company. Institutional interest has moved by -0.07% over the past three months. When it comes to insiders, those who are close to the company currently own 3.00% percent of MOMO shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

How Analysts Feel About Momo Inc.

Although it’s never a good idea to blindly follow the opinions of analysts, it is a good idea to consider their thoughts to validate your own when it comes to making investment decisions in the technology sector. Here are the most recent moves that we’ve seen from analysts when it comes to MOMO.

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Mar-13-19 Upgrade Morgan Stanley Equal-Weight → Overweight
Dec-07-18 Downgrade Morgan Stanley Overweight → Equal-Weight
Dec-07-18 Downgrade Citigroup Buy → Neutral
Jul-31-18 Upgrade Standpoint Research Hold → Buy
Jun-18-18 Downgrade Standpoint Research Buy → Hold

What We’ve Seen In Financial Results

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

  • Analyst Expectations – At the moment, Wall St. analysts have expectations that MOMO will generate EPS in the amount of 3.42, with 0.55 being reported in the earnings report for the current quarter. Although this is not based on earnings, because we’re chatting on the topic of Wall Street analysts, Momo Inc. is currently rated a 1.80 considering a scale that ranges from 1 to 5 where 1 is the poorest possible Wall St. analyst grade and 5 is the best possible.
  • 5-Year Sales – Throughout the last 5 years, Momo Inc. has announced a movement in sales volume in the amount of 432.60%. Earnings per diluted share through the past 5 years have generated movement in the amount of 169.10%.
  • Q/Q – when it comes to quarter over quarter earnings performance, or Q/Q data as it is often represented in today’s society, MOMO has seen a change in earnings that amounts to -4.70%. The company has also moved the needle in terms of revenue in the amount of 50.50%.

How Many Shares Of MOMO Are Available?

Traders and investors seem to have an interest in the counts of shares both available and outstanding. In terms of Momo Inc., currently there are 205.65M and there is a float of 57.88M. These numbers mean that of the total of 205.65M shares of MOMO that are out there today, 57.88M are able to be traded in the public realm.

I also like to take a look at the short float. After all, if a high percentage of the float is sold short, the overall opinion in the market is that the company is going to fall hard. As far as it relates to MOMO, the percentage of the float that is shorted is 12.14%. Most traders believe that a concerning short percent of the float is considered to be anything over 40%. Nonetheless, I have seen that a short ratio over 26% is generally a risky play.

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