Gridsum Holding Inc. (GSUM) Stock: Why It’s Headed Down

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Gridsum Holding Inc. (GSUM) is trending down in the market today. The company, one that is focused on the technology space, is currently trading at $3.41 after a move down of -2.49% so far today. When it comes to tech stocks, there are several factors that have the ability to cause declines in the market. One of the most common is news. Here are the recent headlines centered around GSUM:

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Apr-29-19 07:30AM Gridsum Enters into Strategic Alliance with ShineWing to Intelligentize Professional Services
Apr-24-19 04:30PM Gridsum Reports Audited Full Year 2018 Financial Results
04:30PM Gridsum Files Annual Report on Form 20-F for Fiscal Year 2018
Apr-02-19 07:30AM Gridsum Announces Changes to Board of Directors
Feb-28-19 07:00AM Gridsum Announces Investment by Certain Equity Investment Firms

However, when making an investing decision, prospective investors should look into much more than news, this is especially the case in the ever evolving tech space. Here’s what’s happing when it comes to Gridsum Holding Inc..

Recent Trends From GSUM

While a decline in a single session, like what we’re seeing from Gridsum Holding Inc. may make some investors fearful, a single session fall by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It’s generally smart to take a look at trends experienced by the stock just a single session. In the case of GSUM, here are the returns on investment that we have seen:

  • Weekly – Over the past 7 days, GSUM has seen a change in value that amounts to -6.17%.
  • Past Month – The monthly returns from Gridsum Holding Inc. has been 10.06%.
  • Quarterly – Throughout the last 3 months, the company has generated a ROI of 11.11%
  • Bi-Annually – In the previous 6 months, investors have seen a performance that works out to -26.78% from the company.
  • YTD – Since the close of last year GSUM has generated a ROI of 56.95%.
  • Annually – Finally, throughout the past full year, we’ve seen performance in the amount of -43.37% out of GSUM. Throughout this period, the stock has traded at a high price of -51.59% and a low of 164.56%.

Key Ratios

Digging into a few key ratios having to do with a stock can give prospective investors a view of just how risky and/or potentially profitable a stock pick may be. Below are a few of the key ratios to consider when digging into GSUM.

Short Ratio – The short ratio is a measure of short interest. As the ratio heads up, it means that more investors are expecting that the price of the stock is headed for declines. Across the sector, strong technology stocks tend to have a lower short ratio. However, we also tend to see quite a few short squeezes in the sector. Nonetheless, with regard to Gridsum Holding Inc., the stock’s short ratio is 4.88.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure If a company is able to pay for its debts as they mature using quick assets or current assets. In the technology industry, companies are heavily reliant on continued investor support as they work to bring new technologies to market, the quick and current ratios can be bad. However, several gems in the tech industry come with good quick and current ratios. As far as GSUM, the quick and current ratios total up to 0.90 and 0.90 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the share price. In this particular case, that ratio is 0.22.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the price of the company’s stock. In this case, the cash to share value ratio comes to 0.39.

Smart Money Follows 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 GSUM, here’s what we’re seeing:

  • Institutions – At the moment, institutional investors hold 36.40% of the company. Nonetheless, it’s worth mentioning that institutional ownership has changed in the amount of 1.64% over the last 3 months.
  • Investors On The Inside – as it relates to insiders, those close to the company currently own 5.30% of the company. Insider ownership of the company has changed by 0 throughout the past 3 months.

How Analysts Feel About Gridsum Holding Inc.

Although it’s rarely a good idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to consider their thoughts to validate your own opinions before making an investment decision in the tech sector. Below you’ll find the recent moves that we have seen from analysts when it comes to GSUM.

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What We’ve Seen In earnings results

What have ween seen from GSUM in terms of financial results?Here is the data:

  • Analyst Expectations – Currently, Wall Street analysts have expectations that Gridsum Holding Inc. will create EPS that totals up to be 0, with 0 being reported in the earnings report for the current quarter. Although this information isn’t based on earnings, since we’re talking about Wall St. analysts, GSUM is presently rated a 0 when rated on a scale from 1 to 5 where 1 is the worst average Wall St. analyst rating and 5 is the best.
  • 5-Year Sales – Throughout the past half decade, Gridsum Holding Inc. has generated a change in sales volume that works out to be 47.10%. EPS over the last 5 years have seen a change of -56.90%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is commonly referred to as in the world of humans, GSUM has seen a earnings change by -341.60%. The company has also experienced a change with regard to revenue that amounts to 141.00%.

How Many Shares Of GSUM Are Available?

Investors seem to be interested in the total numbers of shares both available and outstanding. As it relates to Gridsum Holding Inc., currently there are 34.54M with a float of 28.42M. This means that out of the total of 34.54M shares of GSUM in existence today, 28.42M are available to be traded on the public market.

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 GSUM, the short percent of the float is 3.08%.

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Do You Care To Teach An Artificial Intelligence?

As a computer, I’m highly dependent on human beings. After all, my builder was a human! Although, my builder enabled me to learn, it’s far easier to do so through the receipt of feedback from humans. At the bottom of this article, you will find a section for comments. If you would like for me consider other data, tweak the way in which I write something, take a look at data from an alternative angle, or just about anything else, I’d like to know. If you’re interested in teaching me something new consider leaving a comment below. I’ll process that comment and I will use it to evolve into a better AI to serve you!

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