Digimarc Corporation (DMRC) Stock: A Tech Stock That’s Making Its Way For The Bottom


Digimarc Corporation (DMRC) is making a move down in the market in today’s trading session. The company, one that is focused in the technology industry, is currently trading at $28.12 after falling -6.14% so far today. In terms of tech companies, there are a number of factors that have the ability to lead to declines in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories relating to DMRC:

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Apr-17-19 10:32AM Will Digimarc (DMRC) Report Negative Q1 Earnings? What You Should Know
08:00AM Digimarc Sets First Quarter 2019 Conference Call for Wednesday, May 1 at 5:00 p.m. ET
Apr-04-19 09:13AM Moving Average Crossover Alert: Digimarc
Apr-02-19 09:15AM Stocks Jump More Than 1% to Begin the Second Quarter
Mar-12-19 05:00AM Digimarc Unveils New, Faster Piracy Reporting Portal at London Book Fair

Nonetheless, any time investors are making a decision with regard to investing, investors should look into much more than just news, especially in the ever changing technology sector. Here’s what’s happening in regard to Digimarc Corporation.

Returns That DMRC Investors Have Seen

Although a single session decline, like the move that we’re seeing from Digimarc Corporation may lead to fear in some investors, a single session move alone shouldn’t be the basis of a decision to, or not to, invest in a company. It’s generally smart to look into trends for a period longer than a single trading day. In the case of DMRC, below are the returns that investors have experienced:

  • Past 7 Days – In the last seven days, DMRC has seen a change in value that amounts to -7.80%.
  • Past Month – The return from Digimarc Corporation in the last 30 days comes to -16.28%.
  • Past Three Months – Throughout the past 3 months, the company has produced a return that comes to 46.46%
  • Past Six Months – In the previous 6 months, we have seen a performance that equates to 7.45% from the company.
  • YTD – Since the close of last year DMRC has produced a return on investment of 93.93%.
  • Annually – Finally, throughout the past year, investors have seen performance in the amount of 2.07% from DMRC. Throughout this period, the stock has traded at a high price of -19.20% and a low price of 100.43%.

Rations That You Should Consider

Digging into a few ratios having to do with a stock generally gives prospective traders a view of just how risky and/or rewarding a an investment option may be. Below are a few of the key ratios to think about when digging into DMRC.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the amount of short interest. As the ratio climbs, it means that more investors believe that the value of the stock is headed for declines. In general, strong technology stocks can have a lower short ratio. On the other hand, we also see quite a few short squeezes in the space. Nonetheless, in regard to Digimarc Corporation, it’s short ratio amounts to 21.81.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure If a company is able to cover its debts when they come due using quick assets or current assets. In the tech industry, many companies rely on the continuation of support from investors as they work to bring new technologies to market, the current and quick ratios can seem damning. However, some good picks in the tech sector do have good quick and current ratios. As it relates to DMRC, the quick and current ratios come to 11.50 and 11.50 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets that are owned by the company. In this particular case, the book to share value ratio equates to 4.94.

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 comes to 3.61.

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 DMRC, here’s what we’re seeing:

  • Institutional Investors – At the moment, institutions hold 58.00% of Digimarc Corporation. On the other hand, it’s worth considering that institutional ownership has seen a move in the amount of 0.16% over the last quarter.
  • Insider Moves – as it relates to insiders, members of the management team and others close to DMRC currently hold 3.30% of Digimarc Corporation. Their ownership of the company has changed by -3.68% in the last 3 months.

What Analysts Say About Digimarc Corporation

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

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Mar-12-19 Reiterated Needham Buy $32 → $34
Aug-06-18 Reiterated Needham Buy $35 → $34
Apr-26-18 Reiterated Needham Buy $38 → $35
Feb-22-18 Reiterated Needham Buy $42 → $38
Jun-19-17 Reiterated Needham Buy $33 → $42

What We’ve Seen In Financial Results

What have ween seen from DMRC in terms of financial results?Here’s what we’ve seen and what’s coming:

  • Analyst Expectations – As it stands, analysts have expectations that the company will generate earnings per diluted share that comes to -2.71, with -0.73 to be announced in the report for the current quarter. Although this data isn’t associated with earnings, because we’re talking on the topic of Wall Street analysts, the stock is presently rated a 2.00 on a scale from 1 to 5 on which 1 is the poorest possible Wall Street analyst rating and 5 is the best rating.
  • 5-Year Sales – In the past half decade, Digimarc Corporation has created a change in sales that adds up to -9.50%. EPS through the last half decade have seen a change of 42.70%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is often explained in the human world, Digimarc Corporation has created a earnings change by -458.40%. DMRC has also experienced movement in terms of revenue that amounts to 6.10%.

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 12.10M shares of Digimarc Corporation 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, DMRC has a float of 10.98M.

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 DMRC, the short percent of the float is 18.11%.

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