ePlus inc. (PLUS) Stock: Is This Service Stock Worth Your Consideration?

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ePlus inc. (PLUS) is headed up in the market today. The company, focused on the service space, is currently priced at $81.91 after a move up of 13.64% so far in today’s session. When it comes to service sector companies, there are quite a few factors that have the potential to lead to price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories centered around PLUS:

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Aug-07-19 07:15PM EPlus (PLUS) Tops Q1 Earnings and Revenue Estimates
04:05PM ePlus Reports First Quarter Financial Results
Aug-01-19 07:11AM A Look At The Intrinsic Value Of ePlus inc. (NASDAQ:PLUS)
Jul-31-19 04:30PM ePlus Announces First Quarter Fiscal Year 2020 Earnings Release Date and Conference Call
Jul-25-19 04:31PM ePlus Adds New Member to Board of Directors

Nonetheless, any time investors are making a decision with regard to investing, investors should look at far more than just news, especially in the ever complex service sector. Here’s what’s happing when it comes to ePlus inc..

How PLUS Has Been Trending

While a single session gain, like what we’re seeing from ePlus inc. might cause fear in some investors, a single session fall by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It is generally smart to look into trends beyond a single trading day. As it relates to PLUS, here are the movements that investors have seen:

  • Past Seven Days – Throughout the past week, PLUS has seen a price change that amounts to 8.84%.
  • Past 30 Days – The monthly ROI from ePlus inc. works out to 12.98%.
  • Past Quarter – Throughout the last three months, the company has generated a return on investment that comes to -10.73%
  • Bi-Annually – Over the past six months, we’ve seen a performance of -1.77% from the stock.
  • This Year So Far – Since the close of last year PLUS has generated a ROI of 15.09%.
  • Full Year – Lastly, over the last full year, we have seen a change amounting to -21.47% out of PLUS. In this period of time, the stock has sold at a high price of -23.63% and a low price of 25.02%.

Key Ratios

Looking at a few ratios associated with a stock can give prospective investors a view of just how risky and/or rewarding a an investment option might be. Below are a few of the important ratios to look at when digging into PLUS.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the price of the stock is headed for the top. Throughout the sector, strong service sector stocks can come with a lower short ratio. However, we also see quite a few short squeezes in the industry. Nonetheless, as it relates to ePlus inc., the stock’s short ratio amounts to 2.01.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure If a company is able to pay its debts as they mature using current assets or quick assets. do have good quick and current ratios. As it relates to PLUS, the quick and current ratios add up to 1.50 and 1.70 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the price of shares. In this case, the book to share value ratio comes in at 31.68.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the value of the company’s stock. In this case, the cash to share value ratio is 5.85.

What Are Big Money Players Doing With ePlus inc.

An interesting fact that I have come to understand so far in my short time here has been that smart money tends to follow the moves made by big money. Usually, investors that want to play it relatively safe will keep their eyes on trades made by institutions as well as insiders of the company. So, where is the big money when it comes to PLUS? Here’s the scoop:

  • Institutions – At the moment, institutions hold 93.90% of PLUS. On the other hand, it is important to note that institutional ownership has moved in the amount of 1.01% throughout the last quarter.
  • Insider Holdings – with regard to insiders, those close to the situation currently hold 1.80% of the company. Insider ownership of the company has changed by -6.58% over the past quarter.

What Analysts Think About ePlus inc.

Although it’s not a good idea to unknowingly follow the thoughts of analysts, it is a good idea to consider their thoughts when validating your own due diligence when it comes to making an investment decision in the service sector. Below are the recent moves that we’ve seen from analysts as it relates to PLUS.

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Jul-01-19 Upgrade Sidoti Neutral → Buy
May-29-19 Downgrade Berenberg Buy → Hold
Nov-19-18 Initiated Sidoti Neutral $86
Nov-16-18 Initiated Berenberg Buy $96
Feb-09-18 Upgrade Sidoti Neutral → Buy

Financial Results And Expectations

What have ween seen from PLUS in terms of financial results?Here is the data:

  • Analyst Expectations – As it stands at the moment, Wall Street analysts have expectations that the company will come up with earnings per diluted share coming to a total of 5.37, with 1.16 to be announced in the earnings announcement for the current quarter. Although this isn’t earnings driven, since we are talking on the topic of analysts, ePlus inc. is currently graded as a 2.00 considering a scale that ranges from 1 to 5 on which 1 is the worst average analyst rating and 5 is the best possible.
  • 5-Year Sales – Over the last 5 years, ePlus inc. has created a change in revenue that adds up to 5.40%. EPS through the last half decade have generated a change of 16.30%.
  • Q/Q – when it comes to quarter over quarter data, or Q/Q data as it is generally represented in today’s society, ePlus inc. has seen a earnings change by 44.20%. PLUS has also experienced a change in terms of revenue that adds up to -1.40%.

Looking At 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 13.65M shares of ePlus 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, PLUS has a float of 13.07M.

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 PLUS, the short percent of the float is 1.64%.

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