Gridsum Holding Inc. (GSUM) Stock: A Tech Stock That’s Falling


Gridsum Holding Inc. (GSUM) is working its way for to the top in the market in today’s trading session. The stock, focused on the tech space, is currently trading at $2.90 after tumbling -10.77% so far today. As it relates to tech companies, there are a number of aspects that have the ability to cause movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines surrounding 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

Nonetheless, any time investors are making an investing decision, prospective investors should take a look at far more than just news, especially in the ever changing technology space. Here’s what’s going on with Gridsum Holding Inc..

Returns That GSUM Investors Have Seen

Although a move down in a single session, like the fall that we’re seeing from Gridsum Holding Inc. might cause fear in some investors, that alone shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s always smart to look into trends experienced by the stock beyond a single trading day. In the case of GSUM, here are the movements that we’ve seen:

  • Past 5 Sessions – In the past five trading sessions, GSUM has seen a change in value in the amount of -15.20%.
  • Past 30 Days – The monthly performance from Gridsum Holding Inc. comes to -21.20%.
  • Past Three Months – Throughout the last quarter, the company has generated a ROI that comes to -25.64%
  • Bi-Annually – Throughout the past 6 months, we’ve seen a change that works out to -30.12% from the stock.
  • Year To Date – Since the open of this year GSUM has resulted in a ROI of 30.04%.
  • Annually – Lastly, throughout the past year, we’ve seen movement amounting to -53.60% from GSUM. Throughout this period, the stock has sold at a high price of -58.57% and a low price of 124.81%.

Rations That Investors Should Look Into

Looking at various ratios associated with a stock generally gives prospective investors a look of how risky and/or rewarding a an investment option might be. Here are a few of the important ratios to consider when digging into GSUM.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the value of the stock is going to fall. In general, strong technology stocks can carry a lower short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, when it comes to Gridsum Holding Inc., it’s short ratio comes to 11.71.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Basically, they measure the company’s abilities to pay its debts when they mature with only quick assets or current assets. In the tech industry, companies are reliant on continued investor support as they work to bring new technologies to market, the quick and current ratios can seem bad. However, several better companies in the technology space do have positive quick and current ratios. When it comes to GSUM, the quick and current ratios add up to 0.90 and 0.90 respectively.  

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

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the value of shares. In this case, the cash to share value is 0.40.

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 GSUM, here’s what we’re seeing:

  • Institutions – Currently, institutional investors own 32.90% of GSUM. Nonetheless, it is worth mentioning that the ownership held by institutions has changed in the amount of -7.06% over the last 3 months.
  • Insider Moves – as it relates to insiders, members of the management team and others close to GSUM currently hold 5.30% of the company. Their ownership of the company has changed by 0 over the past quarter.

How Analysts Feel About Gridsum Holding Inc.

Although it’s not a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to consider their thoughts when validating your own due diligence before making an investment decision in the technology space. Below are the most recent moves that we have seen from analysts with regard to GSUM.

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What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, GSUM has generated revenue in the amount of $47.10% with earnings coming in at -56.90%. On a quarter over quarter basis, earnings have seen movement of -341.60% and revenue has seen movement of 141.00%.

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 33.79M shares of Gridsum Holding 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, GSUM has a float of 28.42M.

It’s also important to follow the short float. Think about it, if a high portion of the float available for trading is sold short, the overall feeling in the market is that the stock is going to lose value. When it comes to GSUM, the short percentage of the float totals up to 2.98%. Most investors would say that a high short percent of the float would be considered to be anything over 40%. Through my work, I’ve found that any short ratio over 26% is generally a a play that could prove to be very risky.

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