ServiceSource International, Inc. (SREV) Stock: Why It’s Headed Down

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ServiceSource International, Inc. (SREV) is working its way for to the bottom in the market in today’s trading session. The stock, one that is focused in the service sector, is presently trading at $0.76 after heading down -11.05% so far in today’s session. When it comes to service stocks, there are several factors that have the ability to generate price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines surrounding SREV:

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Aug-07-19 07:45PM ServiceSource (SREV) Reports Q2 Loss, Misses Revenue Estimates
04:05PM ServiceSource Reports Second Quarter 2019 Financial Results
Jul-31-19 10:36AM Analysts Estimate ServiceSource (SREV) to Report a Decline in Earnings: What to Look Out for
Jul-25-19 09:30AM ServiceSource to Hold Second Quarter 2019 Financial Results Call on August 8, 2019
Jul-15-19 02:55PM Could ServiceSource International, Inc.’s (NASDAQ:SREV) Investor Composition Influence The Stock Price?

Nonetheless, when making a decision to invest, investors should look into much more than news, especially in the ever complex service sector. Here’s what’s happening in regard to ServiceSource International, Inc..

Trends That We’ve Seen From SREV

Although a decline in a single session, like the move that we’re seeing from ServiceSource International, Inc. may cause fear in some investors, a single session fall alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It’s always a good idea to look into trends just a single trading session. As it relates to SREV, below are the movements that investors have experienced:

  • Past Seven Days – Over the past five trading sessions, SREV has produced a change in value in the amount of -17.36%.
  • Past 30 Days – The return on investment from ServiceSource International, Inc. over the past 30 days has been -18.26%.
  • Quarterly – In the last 3 months, the stock has produced a ROI that comes to -27.58%
  • Bi-Annually – In the previous six months, we have seen a change that works out to -35.56% from the stock.
  • YTD – Since the close of last year SREV has generated a return on investment of -29.59%.
  • Full Year – Finally, over the last year, we have seen movement in the amount of -76.99% from SREV. Over this period, the stock has sold at a high price of -78.67% and a low of -10.17%.

Important Ratios

Digging into a few key ratios associated with a company generally gives prospective traders a look of just how dangerous and/or rewarding a stock pick might be. Below are some of the most important ratios to consider when looking at SREV.

Short Ratio – The short ratio is a tool that is used by traders to measure the level 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 service stocks tend to carry a lower short ratio. However, we also tend to see a lot of short squeezes in the space. Nonetheless, when it comes to ServiceSource International, Inc., the stock’s short ratio amounts to 1.62.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure If a company is able to pay its debts when they come due with only current assets or quick assets. do have positive current and quick ratios. As far as SREV, the quick and current ratios work out to 2.30 and 2.30 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets owned by the company. as it relates to ServiceSource International, Inc., that ratio works out to 1.05.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of the company’s stock. In the case of SREV, the cash to share value ratio works out to 0.

What Institutions And Insiders Think Of ServiceSource International, 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 SREV, here’s what we’re seeing:

Institutions own 88.10% of the company. Institutional interest has moved by 10.23% over the past three months. When it comes to insiders, those who are close to the company currently own 1.90% percent of SREV shares. Institutions have seen ownership changes of an accumulative 17.90% over the last three months.

What Analysts Say About ServiceSource International, Inc.

Although it’s not a good idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to use their thoughts when validating your own before making an investment decision in the service space. Below are the recent moves that we have seen from analysts when it comes to SREV.

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Feb-21-19 Downgrade B. Riley FBR Buy → Neutral $1.75 → $1.25
Nov-08-18 Reiterated B. Riley FBR Buy $3 → $2
Oct-19-18 Downgrade JMP Securities Mkt Outperform → Mkt Perform
Mar-27-18 Initiated B. Riley FBR, Inc. Buy $5
Feb-22-17 Downgrade Northland Capital Outperform → Market Perform

What We’ve Seen In earnings results

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

  • Analyst Expectations – Currently, Wall St. analysts are expecting that the company will come up with EPS that totals up to be -0.02, with -0.02 being reported in the report for the current quarter. Although this information is not based on earnings, since we’re talking on the topic of Wall St. analysts, SREV is currently rated a 3.00 on a scale from 1 to 5 on which 1 is the poorest analyst grade and 5 is the best possible.
  • 5-Year Sales – In the last 5 years, ServiceSource International, Inc. has announced a movement in sales that comes to a total of -2.60%. Earnings per share over the period have experienced a change of 1.60%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is generally referred to as in the human world, SREV has experienced a earnings change by 52.30%. ServiceSource International, Inc. has also experienced movement when it comes to sales that adds up to -5.30%.

What’s The Float Looking Like?

Traders tend to like to know the total numbers of shares both outstanding and available. In regard to ServiceSource International, Inc., there are currently 95.34M and there is a float of 90.15M. These data mean that of the total of 95.34M shares of SREV in existence today, 90.15M are available to be traded in the public realm.

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 SREV, the short percent of the float is 0.77%.

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