Internap Corporation (INAP) Stock: Why It’s Declining

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Internap Corporation (INAP) is headed up in the market in today’s trading session. The stock, one that is focused on the technology space, is presently priced at $2.54 after heading down -9.29% so far in today’s session. As it relates to tech companies, there are several factors that have the ability to cause price movement in the market. News is one of the most common reasons for movement. Here are the recent headlines centered around INAP:

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Jun-10-19 08:00AM Ubersmiths New Integration with QuickBooks Online Helps Improve Subscription Business Performance and Forecasting
08:00AM LGE Community Credit Union Selects INAP Data Centers for Managed Multicloud Services
May-23-19 04:10PM Edited Transcript of INAP earnings conference call or presentation 9-May-19 12:30pm GMT
May-20-19 08:00AM INAP Announces Expanded Bare Metal Solutions for Sovrn
May-17-19 12:36PM How Much Are Internap Corporation (NASDAQ:INAP) Insiders Spending On Buying Shares?

Nonetheless, when making a decision with regard to investing, investors should take a look at much more than news, this is especially the case in the ever changing tech industry. Here’s what’s happening with Internap Corporation.

What We’ve Seen From INAP

While a single session decline, like the move that we’re seeing from Internap Corporation may make some investors unhappy, a single session move alone shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s always a good idea to dig into trends experienced by the stock just a single trading session. When it comes to INAP, here are the returns on investment that we’ve seen:

  • Past Seven Days – Over the last 5 trading sessions, INAP has produced a price change amounting to -4.15%.
  • Past 30 Days – The monthly returns from Internap Corporation comes to -27.64%.
  • Past 3 Months – Throughout the past 3 months, the stock has produced a ROI that comes to -57.31%
  • Past Six Months – Throughout the past six months, we have seen a change that works out to -52.08% from the company.
  • This Year So Far – Since the the last trading session of last year INAP has resulted in a return on investment of -38.80%.
  • Full Year – Lastly, over the past full year, we have seen a change in the amount of -77.68% out of INAP. Throughout this period, the stock has sold at a high of -83.41% and a low price of 10.92%.

Important Ratios

Looking at various key ratios having to do with a stock can give prospective traders a look of just how risky and/or potentially profitable a pick may be. Here are some of the important ratios to think about when looking at INAP.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the value of the stock is headed for declines. In general, strong technology stocks tend to carry a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the industry. Nonetheless, in regard to Internap Corporation, the stock’s short ratio amounts to 13.16.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure If a company is able to cover its debts as they mature with only current assets or quick assets. In the tech sector, many companies are heavily reliant on the continuation of support from investors as they work to bring new technologies to market, the quick and current ratios can be bad. Nonetheless, some better companies in the technology industry come with strong quick and current ratios. In terms of INAP, the quick and current ratios work out to 0.80 and 0.80 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets that are owned by the company. In this particular case, that ratio works out to -0.92.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of the company’s stock. In the case of INAP, the cash to share value ratio comes to 0.32.

What Are Big Money Players Doing With Internap Corporation

An interesting fact that I’ve learned in my short period here has been that smart money tends to follow big money. So, investors that want to keep their investments relatively safe will pay close attention to trades made by institutions and insiders of the company. So, where is the big money when it comes to INAP? Here’s what’s going on:

  • Institutions – At the moment, institutional investors own 73.40% of INAP. Nonetheless, it is worth considering that institutional ownership has changed in the amount of -12.02% throughout the last 3 months.
  • Insiders – As far as insiders go, those close to the situation currently own 5.50% of Internap Corporation. Their ownership of the company has moved -0.01% throughout the past 3 months.

How Analysts Feel About Internap Corporation

While it’s never a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to consider their thoughts in order to validate your own before making investment decisions in the technology space. Here are the recent moves that we have seen from analysts with regard to INAP.

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Mar-21-19 Upgrade Wells Fargo Market Perform → Outperform $8
Dec-10-18 Initiated Jefferies Buy $7.50
Sep-19-18 Initiated SunTrust Buy $22
Aug-03-18 Reiterated Stifel Hold $12 → $13
Jul-17-18 Resumed Stifel Hold $12

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.13. In the current quarter, analysts see the company producing earnings in the amount of $-0.42. Over the last 5 years, INAP has generated revenue in the amount of $2.30% with earnings coming in at -14.20%. On a quarter over quarter basis, earnings have seen movement of -16.60% and revenue has seen movement of -0.80%.

Looking At Share Counts

Traders and investors seem to have an interest in the counts of shares both outstanding and available. When it comes to Internap Corporation, currently there are 26.21M and there is a float of 24.87M. These numbers mean that of the total of 26.21M shares of INAP that are out there today, 24.87M are available to trade hands by the public.

I also like to take a look at the short percentage of the float. After all, if a large portion of the float available for trading is sold short, the overall opinion among investors is that the company is going to take a dive. With regard to INAP, the short percentage of the float is currently 22.00%. Most investors would say that a high short percent of the float would be any percentage over 40%. In my research, I’ve found that any short percent of the float over 26% is likely a play that comes with hefty risk.

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