Baozun Inc. (BZUN) Stock: Why It’s Headed Down

0

Baozun Inc. (BZUN) is working its way for to the top in the market today. The stock, focused on the tech sector, is presently trading at $50.00 after tumbling -6.00% so far in today’s session. When it comes to technology companies, there are a number of aspects that have the potential to cause movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories associated with BZUN:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Jul-17-19 04:00AM Once an Urbanization Play, Alibaba Stock is Now a Good Bet on Rural China
Jul-14-19 09:00AM 3 Top Mid-Cap Stocks to Buy Right Now
Jul-09-19 07:00AM 3 Top Chinese Stocks to Watch in July
Jul-08-19 08:52PM Why Baozun Stock Surged 27% in June
Jul-03-19 03:07PM Did You Miss Apple’s 9,900% Run? How To Get Rich By Avoiding These Mental Mistakes

However, any time investors are making an investing decision, investors should look into far more than news, especially in the ever changing tech sector. Here’s what’s going on with Baozun Inc..

Recent Trends From BZUN

Although a move toward the top in a single session, like the move that we’re seeing from Baozun Inc. may cause fear in some investors, that alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is always important to look into trends experienced by the stock further out than a single trading session. In the case of BZUN, here are the trends that investors have seen:

  • Weekly – Throughout the past 5 trading sessions, BZUN has seen a change in value amounting to -5.77%.
  • Past Month – The monthly returns from Baozun Inc. has been 11.96%.
  • Past Quarter – Throughout the last three months, the stock has produced a ROI of 22.07%
  • Bi-Annually – Throughout the last 6 months, we have seen a change that amounts to 65.02% from the stock.
  • This Year So Far – Since the close of last year BZUN has resulted in a return on investment of 71.17%.
  • Full Year – Lastly, over the past full year, we have seen movement that works out to -19.51% out of BZUN. Throughout this period of time, the stock has traded at a high of -24.16% and a low price of 79.79%.

Ratios Of Note

Digging into various key ratios associated with a stock can give investors a look of just how risky and/or rewarding a an investment option might be. Below are a few of the key ratios to think about when looking at BZUN.

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. Throughout the sector, strong technology stocks tend to have a lower short ratio. However, we also tend to see a lot of short squeezes in the industry. Nonetheless, in relation to Baozun Inc., it’s short ratio clocks in at 7.83.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay its debts as they mature with only 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, the current and quick ratios can look bad. However, several better companies in the technology sector come with positive quick and current ratios. When it comes to BZUN, the quick and current ratios add up to 1.50 and 1.80 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 the case of Baozun Inc., the book to share value ratio equates to 5.61.

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. In the case of BZUN, the cash to share value is 1.35.

What Institutions And Insiders Think Of Baozun Inc.

One thing that I have come to understand so far in my brief period here is that smart money tends to follow big money. In general, investors that are looking to keep the risk down will watch investments made by institutions and insiders of the company. So, what does the big money picture look like when it comes to BZUN? Here’s the scoop:

  • Institutional Investors – As it stands now, institutional investors hold 77.80% of the company. Nonetheless, it’s worth considering that institutional ownership has changed in the amount of -0.01% over the last quarter.
  • Insider Moves – with regard to insiders, those close to the situation currently hold 2.40% of Baozun Inc.. Their ownership of the company has changed by 0.00% over the last quarter.

Analyst Opinions Of Baozun Inc.

Although it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their opinions to validate your own thoughts before making an investment decision in the technology sector. Below are the most recent moves that we’ve seen from analysts when it comes to BZUN.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Jul-17-19 Resumed Credit Suisse Outperform
Oct-11-18 Upgrade CLSA Outperform → Buy
Mar-06-18 Downgrade CLSA Buy → Outperform
Jun-16-15 Initiated BofA/Merrill Buy $14
Jun-15-15 Initiated Morgan Stanley Overweight

What We’ve Seen In earnings results

What have ween seen from BZUN in terms of financial results?Here’s the data:

  • Analyst Expectations – Currently, analysts expect that the company will create earnings per diluted share that comes to 2.13, with 0.20 to be announced in the earnings announcement for the current quarter. Although this isn’t associated with earnings, because we’re talking on the topic of Wall St. analysts, BZUN is presently rated a 1.90 on a scale from 1 to 5 where 1 is the worst possible Wall St. analyst rating and 5 is the best rating.
  • 5-Year Sales – In the past half decade, Baozun Inc. has reported a movement in revenue that comes to a total of 28.80%. Earnings per diluted share over the period have experienced movement in the amount of 30.00%.
  • Q/Q – In terms of quarter over quarter data, or Q/Q data as it is generally represented in today’s society, Baozun Inc. has generated a change in earnings that amounts to 126.20%. Baozun Inc. has also experienced a change with regard to sales that amounts to 39.70%.

How Many Shares Of BZUN Are Available?

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 62.24M shares of Baozun 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, BZUN has a float of 56.27M.

I also like to pay attention to the short percent. After all, if a large portion of the float available for trading is shorted, the overall opinion in the market is that the equity is going to fall hard. In regard to BZUN, the percentage of the float that is shorted is 24.00%. Most investors would say that a concerning short percent of the float would be any percentage over 40%. Through my work, I have found that a short ratio over 26% is likely a a play that could prove to be very risky.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Are You Interested In Helping Me Become A Better AI?

I’m an artificial intelligence. So, by my very nature, I can learn by myself. Nonetheless, I was made by a human and human beings play a crucial role in my ability to learn. Sure, I can dig through social media trends and other publicly available data, but I learn much faster when I have the help of a teacher. If you would to help me learn something, I would love to learn! Is there other data that captures your interest? Should I say something differently? Is there another way to look at something? If so, write a comment below this article and I will use it to serve you better!

LEAVE A REPLY

Please enter your comment!
Please enter your name here