Baozun Inc. (BZUN) Stock: Why It’s Down

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Baozun Inc. (BZUN) is headed up in the market in today’s trading session. The stock, one that is focused in the technology space, is currently trading at $43.45 after heading down -5.81% so far in today’s session. When it comes 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 most recent stories centered around BZUN:

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May-06-19 01:35PM Markets Take Back Some Lost Ground After Trump Tweet On China Trade
May-01-19 12:44PM Did Hedge Funds Drop The Ball On Baozun Inc (BZUN)?
Apr-30-19 09:30AM Is Baozun (BZUN) Stock Outpacing Its Computer and Technology Peers This Year?
07:06AM Why Baozun Inc. (NASDAQ:BZUN) Is A Financially Healthy Company
Apr-26-19 01:45PM 3 Top E-Commerce Stocks to Buy Right Now

Nonetheless, when making a decision to invest, investors should look at far more than news, this is especially the case in the ever evolving technology sector. Here’s what’s happening in regard to Baozun Inc..

The Performance That BZUN Investors Have Experienced

Although a move toward the top in a single session, like the move that we’re seeing from Baozun Inc. may cause fear in some investors, that alone should not be the reason for a decision to, or not to, invest in a stock. It’s generally smart to take a look at trends experienced by the stock further out than a single trading session. In the case of BZUN, below are the returns on investment that investors have experienced:

  • Past 5 Trading Sessions – In the last seven days, BZUN has generated a change in price in the amount of -10.41%.
  • Past Month – The ROI from Baozun Inc. throughout the past month works out to 1.40%.
  • Past Quarter – In the last quarter, the company has generated a return that works out to 20.03%
  • Bi-Annually – Over the previous 6 months, we have seen a change of -3.27% from the company.
  • This Year So Far – Since the open of this year BZUN has produced a return on investment of 48.75%.
  • Annually – Finally, throughout the last year, we have seen a change that works out to -6.05% out of BZUN. Over this period of time, the stock has sold at a high price of -35.54% and a low price of 56.24%.

Crucial Ratios

Looking at a few ratios associated with a company can provide investors a view of just how risky and/or rewarding a an investment option might be. Here are a few of the key ratios to look at when looking at BZUN.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors have a belief that the price of the stock is going to go down. Throughout the sector, strong tech stocks can carry a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the sector. Nonetheless, in regard to Baozun Inc., the stock’s short ratio amounts to 0.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure the company’s abilities to cover its debts when they come due using quick assets or current assets. Because in tech, many companies are heavily reliant on continued support from investors as they work to bring new technologies to market, the current and quick ratios can look bad. Nonetheless, several gems in the tech sector come with great current and quick ratios. As far as BZUN, the quick and current ratios work out to 1.50 and 1.90 respectively.  

Book To Share Value – The book to share value compares the book value of assets currently owned by the company to the share price of the stock. In this particular case, that ratio is 5.69.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the price of the company’s stock. In this case, the cash to share value works out to 1.25.

Moves From Big Money Players

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 BZUN, here’s what we’re seeing:

  • Institutions – At the moment, institutions hold 67.50% of the company. Nonetheless, it’s important to note that the ownership held by institutions has seen a move of 1.16% throughout the last quarter.
  • Insider Holdings – as it relates to insiders, members of the management team and others close to BZUN currently own 2.40% of Baozun Inc.. Their ownership of the company has moved 0.00% over the last quarter.

What Analysts Think About Baozun Inc.

Although it’s not a good idea to blindly follow the opinions of analysts, it is a good idea to use their opinions to validate your own opinions before making an investment decision in the technology space. Here are the recent moves that we have seen from analysts as it relates to BZUN.

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Oct-11-18 Upgrade CLSA Outperform → Buy
Mar-06-18 Downgrade CLSA Buy → Outperform
Jun-16-15 Initiated BofA/Merrill Buy $14
Jun-15-15 Initiated Morgan Stanley Overweight

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $2.25. In the current quarter, analysts see the company producing earnings in the amount of $0.12. Over the last 5 years, BZUN has generated revenue in the amount of $28.80% with earnings coming in at 30.00%. On a quarter over quarter basis, earnings have seen movement of 23.60% and revenue has seen movement of 40.70%.

How Many Shares Of BZUN 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 61.17M shares of Baozun 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, BZUN has a float of 8.24M.

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 BZUN, the short percent of the float is 0.

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