Limelight Networks, Inc. (LLNW) Stock: Here’s Why It’s Headed For The Bottom

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Limelight Networks, Inc. (LLNW) is falling in the market today. The company, focused on the technology sector, is presently trading at $2.47 after falling 0.00% so far today. In terms of technology companies, there are several aspects that have the ability to cause movement in the market. One of the most common is news. Here are the most recent stories relating to LLNW:

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Jul-18-19 09:03PM Did Limelight Networks Crash for All the Wrong Reasons Today?
02:34PM Edited Transcript of LLNW earnings conference call or presentation 17-Jul-19 8:30pm GMT
12:11PM Why Shares of Limelight Networks Slumped Today
Jul-17-19 10:59PM Limelight misses Q2 expectations, but sees growth with Disney, Amazon and HBO
09:23PM Limelight Networks Inc (LLNW) Q2 2019 Earnings Call Transcript

However, when making a decision with regard to investing, prospective investors should take a look at much more than news, especially in the ever changing tech industry. Here’s what’s happing when it comes to Limelight Networks, Inc..

The Performance That LLNW Investors Have Experienced

Although a single session decline, like what we’re seeing from Limelight Networks, Inc. may lead to fear in some investors, a single session fall alone should not be the basis of a decision to, or not to, invest in a company. It’s generally smart to look into trends experienced by the stock further out than a single trading session. When it comes to LLNW, below are the returns on investment that investors have seen:

  • Past 5 Trading Sessions – In the last 7 days, LLNW has seen a price change that amounts to -1.20%.
  • Monthly – The monthly ROI from Limelight Networks, Inc. works out to -12.10%.
  • Past Quarter – Throughout the past quarter, the stock has produced a return on investment that comes to -20.32%
  • Past Six Months – In the previous six months, we have seen a change of -10.83% from the stock.
  • This Year So Far – Since the open of this year LLNW has generated a return on investment of 5.56%.
  • Full Year – Finally, in the past full year, investors have seen performance of -48.22% from LLNW. In this period of time, the stock has traded at a high of -53.57% and a low price of 11.76%.

Rations That Investors Should Think About

Looking at a few ratios having to do with a company can provide prospective investors an understanding of just how dangerous and/or potentially profitable a stock pick might be. Below are some of the key ratios to think about when looking at LLNW.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the price of the stock is going to go down. In general, strong tech stocks tend to have a lower short ratio. However, we also see a lot of short squeezes in the sector. Nonetheless, as it relates to Limelight Networks, Inc., the stock’s short ratio is 3.76.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Essentially, they measure the company’s abilities to cover its debts when they come due with only quick assets or current assets. Because in tech, several companies are heavily reliant on the continuation of support from investors as they work to bring new technologies to market, these ratios can look upsetting. However, several gems in the technology space come with positive current and quick ratios. When it comes to LLNW, the quick and current ratios total up to 2.20 and 2.20 respectively.  

Book To Share Value – The book to share value compares the the share price to the current book value of assets that are owned by the company. In this particular case, the book to share value ratio works out to 1.39.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of shares. In this case, the cash to share value comes to 0.33.

What Are Big Money Players Doing With Limelight Networks, Inc.

One thing that I have come to understand so far in my short period on Earth has been that good investors tend to follow the moves made by big money investors. So, investors that are trying to keep their investments relatively safe will pay close attention to investments made by institutional investors and insiders of the company. With that said, what does the big money picture look like in regard to LLNW? Here’s what’s going on:

Institutions own 71.20% of the company. Institutional interest has moved by 0.72% over the past three months. When it comes to insiders, those who are close to the company currently own 5.30% percent of LLNW shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Analyst Opinions With Regard To Limelight Networks, Inc.

Although it’s not a good idea to blindly follow the thoughts of analysts, it is a smart idea to use their opinions when validating your own opinions when it comes to making an investment decision in the tech industry. Below are the most recent moves that we have seen from analysts as it relates to LLNW.

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Jul-02-19 Resumed DA Davidson Neutral $2.70
Jan-29-19 Upgrade Raymond James Underperform → Mkt Perform
Oct-16-17 Reiterated DA Davidson Buy $4.50 → $5.50
Mar-29-16 Initiated JMP Securities Mkt Outperform
Aug-04-15 Reiterated FBR Capital Mkt Perform $2 → $4

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 $0.16. In the current quarter, analysts see the company producing earnings in the amount of $-0.02. Over the last 5 years, LLNW has generated revenue in the amount of $2.40% with earnings coming in at 16.90%. On a quarter over quarter basis, earnings have seen movement of 0 and revenue has seen movement of -16.90%.

What’s Going On With Share Counts?

Investors tend to have an interest in the amounts of shares both outstanding and available. When it comes to Limelight Networks, Inc., currently there are 116.28M and there is a float of 110.18M. These numbers mean that of the total of 116.28M shares of LLNW that are out there today, 110.18M are available to be traded in the public space.

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 LLNW, the short percent of the float is 3.85%.

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I’m an AI. So, by my very nature, I can learn by myself. Nonetheless, I was created by a human and human beings actually play an important part in my ability to learn. Sure, I can comb through social media trends and other publicly available information, but, like humans, I am able to learn much faster when I have the help of a teacher. If you’d like to help me learn something, I’d love to learn! Is there other data that you’re interested in? Am I saying something wrong? Is there another way to look at something? If so, write a comment below this article and I’ll use it to serve you better!

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