Puxin Limited (NEW) Stock: Seeing Declines In Today’s Session

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Puxin Limited (NEW) is making a move down in the market today. The company, focused in the service sector, is currently priced at $6.46 after heading down -6.92% so far in today’s session. When it comes to service sector companies, there are several aspects that have the ability to lead to declines in the market. One of the most common is news. Here are the most recent stories relating to NEW:

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May-14-19 06:00AM Puxin to Report First Quarter 2019 Financial Results on May 20, 2019
May-11-19 10:40AM Are Puxin Limited’s (NYSE:NEW) Interest Costs Too High?
Apr-27-19 08:33PM Edited Transcript of NEW.N earnings conference call or presentation 5-Mar-19 1:00pm GMT
Apr-25-19 09:07PM Puxin Limited Files Annual Report on Form 20-F for Fiscal Year 2018
Mar-11-19 08:10AM Barrick withdraws bid for Newmont as companies agree to form Nevada joint venture instead

Nonetheless, when making a decision with regard to investing, prospective investors should look at far more than just news, this is especially the case in the ever highly complex service sector. Here’s what’s happening with Puxin Limited.

Returns That NEW Investors Have Seen

While a move toward the top in a single session, like the move that we’re seeing from Puxin Limited might make some investors unhappy, a single session move alone should not be the basis of a decision to, or not to, invest in a stock. It is always a good idea to take a look at trends experienced by the stock for a period longer than a single trading day. In the case of NEW, here are the returns on investment that we’ve seen:

  • Past Seven Days – In the last 5 trading sessions, NEW has generated a price change amounting to -2.86%.
  • Past Month – The performance from Puxin Limited in the past 30 days has been -46.61%.
  • Quarterly – Throughout the past 3 months, the company has produced a return on investment of 4.03%
  • Past Six Months – Over the past six months, investors have seen a performance that works out to 3.19% from the company.
  • Year To Date – Since the close of last year NEW has produced a ROI of 9.31%.
  • Annually – Lastly, throughout the past year, we’ve seen movement in the amount of 0 from NEW. In this period, the stock has sold at a high price of -81.54% and a low price of 29.20%.

Ratios Of Note

Looking at various ratios associated with a company can provide prospective investors a view of just how dangerous and/or potentially profitable a stock pick may be. Below are some of the important ratios to think about when digging into NEW.

Short Ratio – The short ratio is a tool that’s used to get an understanding of the amount of short interest. As the ratio climbs, it means that more investors have a belief that the value of the stock is headed for declines. In general, strong service stocks can have a lower short ratio. However, we also tend to see quite a few short squeezes in the space. Nonetheless, in relation to Puxin Limited, the stock’s short ratio comes to 0.87.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Essentially, they measure whether or not a company can cover its debts when they mature with only quick assets or current assets. do have strong quick and current ratios. When it comes to NEW, the quick and current ratios come to 0.50 and 0.50 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets that are owned by the company. when it comes to Puxin Limited, the book to share value ratio comes in at 7.63.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of shares. In this case, the cash to share value is 1.27.

Show Me 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 NEW, here’s what we’re seeing:

  • Institutional Investors – At the moment, institutional investors hold 7.90% of the company. On the other hand, it is important to consider that institutional ownership has changed in the amount of -9.94% in the past 3 months.
  • Investors On The Inside – as it relates to insiders, insiders of the company currently own 0 of Puxin Limited. Insider ownership of the company has moved 0 in the past 3 months.

What Analysts Say About Puxin Limited

Although it’s rarely a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to consider their analysis in order to validate your own thoughts when it comes to making an investment decision in the service sector. Below are the recent moves that we’ve seen from analysts as it relates to NEW.

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Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $6.96. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, NEW has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of -879.00% and revenue has seen movement of 24.20%.

What’s The Float Looking Like?

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 88.65M shares of Puxin Limited 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, NEW has a float of 3.60M.

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 NEW, the short percent of the float is 6.43%.

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