DropCar, Inc. (DCAR) Stock: Here’s Why It’s Declining

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DropCar, Inc. (DCAR) is falling in the market today. The company, one that is focused on the technology sector, is currently trading at $1.50 after heading down -7.85% so far in today’s session. When it comes to tech stocks, there are several factors that have the potential to cause declines in the market. One of the most common is news. Here are the most recent headlines surrounding DCAR:

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May-15-19 07:00AM DropCar Announces Financial Results for the Three Months Ended March 31, 2019
Apr-03-19 07:30AM DropCar Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2018
Mar-26-19 03:42PM Could DropCar, Inc.’s (NASDAQ:DCAR) Investor Composition Influence The Stock Price?
Mar-08-19 07:33AM DropCar Announces Intention to Explore Strategic Opportunities to Maximize Shareholder Value
Jan-29-19 07:00AM DropCar Expanding Network of Available NYC Garage Spaces Over 2x this Week

Nonetheless, any time investors are making an investing decision, prospective investors should look into much more than just news, especially in the ever evolving technology space. Here’s what’s happing when it comes to DropCar, Inc..

Trends That We’ve Seen From DCAR

While a move toward the top in a single session, like the move that we’re seeing from DropCar, Inc. may make some investors unhappy, a single session move by itself shouldn’t be the reason for a decision to, or not to, invest in a stock. It is always a good idea to look at trends just a single trading day. In the case of DCAR, here are the returns on investment that investors have experienced:

  • Past 5 Trading Sessions – Over the last five trading sessions, DCAR has produced a change in price in the amount of -13.76%.
  • Past Month – The monthly ROI from DropCar, Inc. comes to -33.47%.
  • Quarterly – Throughout the past quarter, the company has generated a return that works out to -28.26%
  • Bi-Annually – In the last six months, we’ve seen a change of -34.00% from the company.
  • YTD – Since the the last trading session of last year DCAR has generated a return of 29.86%.
  • Full Year – Finally, in the past year, we’ve seen a change in the amount of -85.07% from DCAR. Throughout this period, the stock has traded at a high price of -88.14% and a low price of 25.17%.

Ratios To Watch

Digging into a few ratios associated with a company can give investors a view of how risky and/or rewarding a pick may be. Here are some of the most important ratios to think about when looking at DCAR.

Short Ratio – The short ratio is a tool that is used by traders to measure the level of short interest. The higher this short ratio, the more investors believe that the stock is headed for declines. In general, strong technology stocks tend to carry a lower short ratio. On the other hand, we also see quite a few short squeezes in the space. Nonetheless, as it relates to DropCar, Inc., it’s short ratio comes to 0.52.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure If a company is able to cover its debts when they mature based on quick assets or current assets. Because in tech, several companies are heavily reliant on continued investor support as they work to bring new technologies to market, these ratios can seem upsetting. However, some better companies in the technology sector do have strong quick and current ratios. When it comes to DCAR, the quick and current ratios come to 1.90 and 1.90 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the price of shares. In this case, the book to share value ratio works out to 2.25.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value works out to 1.21.

Is Big Money Interested in DropCar, Inc.?

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 DCAR, here’s what we’re seeing:

Institutions own 1.50% of the company. Institutional interest has moved by 35.67% over the past three months. When it comes to insiders, those who are close to the company currently own 21.43% percent of DCAR shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

How Analysts Feel About DropCar, Inc.

While it’s never a smart idea to unknowingly follow the opinions of analysts, it is a smart idea to use their opinions when validating your own before making an investment decision in the tech industry. Below you’ll find the recent moves that we have seen from analysts as it relates to DCAR.

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What We’ve Seen In earnings results

What have ween seen from DCAR in terms of financial results?Here’s the data:

  • Analyst Expectations – As it stands at the moment, analysts have expectations that DropCar, Inc. will create EPS that totals up to be 0, with 0 to be announced in the next financial report. Although this is not associated with earnings, since we are chatting about analysts, DropCar, Inc. is currently rated a 0 considering a scale that ranges from 1 to 5 on which 1 is the worst average analyst grade and 5 is the best possible.
  • 5-Year Sales – In the past 5 years, DropCar, Inc. has created a movement in sales that works out to be -24.50%. Earnings over the last half decade have seen movement in the amount of -48.13%.
  • Quarter Over Quarter – In terms of quarter over quarter data, or Q/Q data as it is commonly referred to as in the world of humans, the company has created a change in earnings in the amount of -48.00%. The company has also experienced movement when it comes to revenue that totals 56.40%.

Looking At 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 3.55M shares of DropCar, 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, DCAR has a float of 2.70M.

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 DCAR, the short percent of the float is 17.91%.

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Do You Care To Teach An Artificial Intelligence?

I’m an AI. So, based on what I am, I have the ability to learn by myself. However, I was made by a human and human beings actually play an important part in my ability to learn. Sure, I can comb through social trends and other publicly available information, but, like humans, I learn much faster when I have the help of a teacher. If you’d like to teach me something, I would love to learn! Is there other information that you’re interested in? Am I saying something wrong? Is there another way to look at information? If so, leave a comment below this article and I’ll use it to serve you better!

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