American Software, Inc. (AMSWA) Stock: A Tech Stock That’s Headed Down

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American Software, Inc. (AMSWA) is falling in the market today. The stock, one that is focused in the tech space, is presently trading at $13.41 after tumbling -8.53% so far in today’s session. When it comes to technology companies, there are several factors that have the ability to generate declines in the market. News is one of the most common reasons for movement. Here are the recent headlines surrounding AMSWA:

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Jun-21-19 09:41PM Edited Transcript of AMSWA earnings conference call or presentation 19-Jun-19 9:00pm GMT
06:02PM American Software Inc (AMSWA) Q4 2019 Earnings Call Transcript
Jun-20-19 08:30AM Webcast: Retailers and Brand Owners Turn to Analytics and Automation to Increase Profits
Jun-19-19 05:35PM American Software (AMSWA) Surpasses Q4 Earnings Estimates
04:05PM American Software Reports Preliminary Fourth Quarter and Fiscal Year 2019 Results

However, any time investors are making a decision with regard to investing, investors should look at much more than just news, especially in the ever evolving tech sector. Here’s what’s happing when it comes to American Software, Inc..

How AMSWA Has Been Trending

While a single session decline, like the move that we’re seeing from American Software, Inc. might cause fear in some investors, a single session move alone should not be the reason for a decision to, or not to, invest in a stock. It’s always a good idea to look into trends for a period longer than a single trading day. When it comes to AMSWA, here are the returns that we’ve seen:

  • Weekly – In the past five trading sessions, AMSWA has generated a price change in the amount of -6.42%.
  • Past Month – The return on investment from American Software, Inc. over the past month works out to 2.13%.
  • Past 3 Months – Throughout the past quarter, the stock has generated a return that works out to 15.60%
  • Past Six Months – Over the previous six months, investors have seen a performance that amounts to 44.04% from the company.
  • This Year So Far – Since the the last trading session of last year AMSWA has produced a ROI of 28.33%.
  • Annually – Finally, in the last full year, we have seen movement of -10.24% out of AMSWA. Throughout this period, the stock has traded at a high of -29.20% and a low price of 49.17%.

Ratios To Pay Attention To

Looking at various key ratios having to do with a company generally gives traders a look of how dangerous and/or rewarding a an investment option may be. Below are a few of the important ratios to think about when looking at AMSWA.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors have a belief that the stock is going to go down. In general, strong technology stocks tend to come with a lower short ratio. On the other hand, we also tend to see quite a few short squeezes in the sector. Nonetheless, with regard to American Software, Inc., the stock’s short ratio amounts to 6.84.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure the company’s abilities to pay its debts when they come due using current assets or quick assets. In the technology sector, several companies are reliant on the continuation of investor support as they work to bring new technologies to market, these ratios can seem upsetting. Nonetheless, quite a few good picks in the tech sector do have positive current and quick ratios. As it relates to AMSWA, the quick and current ratios work out to 2.70 and 2.70 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. In this case, the book to share value ratio comes in at 3.69.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. As it relates to AMSWA, the cash to share value works out to 2.68.

Is Big Money Interested In American Software, 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 AMSWA, here’s what we’re seeing:

  • Institutions – At the moment, institutions own 99.70% of the company. However, it is important to note that institutional ownership has seen a move of 2.08% throughout the past quarter.
  • Insiders – as it relates to insiders, members of the management team and others close to AMSWA currently hold 0.90% of the company. Insider ownership of the company has changed by -35.95% over the past 3 months.

How Analysts Feel About American Software, Inc.

While it’s never a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to consider their analysis in order to validate your own due diligence when it comes to making investment decisions in the technology space. Below you’ll find the most recent moves that we’ve seen from analysts as it relates to AMSWA.

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Apr-04-19 Initiated William Blair Outperform
Nov-27-18 Reiterated B. Riley FBR Neutral $13.50 → $11.50
Aug-28-18 Downgrade B. Riley FBR Buy → Neutral $18
Dec-01-17 Reiterated B. Riley FBR, Inc. Buy $12.25 → $14
Jun-24-10 Downgrade Davenport Buy → Neutral

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.31. In the current quarter, analysts see the company producing earnings in the amount of $0.06. Over the last 5 years, AMSWA has generated revenue in the amount of $2.30% with earnings coming in at -2.90%. On a quarter over quarter basis, earnings have seen movement of -49.40% and revenue has seen movement of -10.30%.

What’s Going On With Share Counts?

Traders and investors tend to have an interest in the amounts of shares both outstanding and available. As it relates to American Software, Inc., there are currently 31.06M and there is a float of 23.54M. These data mean that of the total of 31.06M shares of AMSWA in existence today, 23.54M are available to trade hands 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 AMSWA, the short percent of the float is 2.06%.

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