Smith Micro Software, Inc. (SMSI) Stock: A Good Pick In The technology Space?

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Smith Micro Software, Inc. (SMSI) is headed up in the market in today’s trading session. The company, focused in the technology space, is presently trading at $6.37 after climbing 5.81% so far in today’s session. When it comes to technology companies, there are a number of factors that have the ability to lead to movement in the market. One of the most common is news. Here are the recent trending headlines relating to SMSI:

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Aug-06-19 08:07AM Smith Micro Software, Inc. (SMSI) Shares March Higher, Can It Continue?
Jul-31-19 08:00AM Smith Micro Announces Upgrade to SafePath® 6.0
Jul-27-19 10:38AM Edited Transcript of SMSI earnings conference call or presentation 25-Jul-19 8:30pm GMT
Jul-26-19 11:13AM A Look At Benzinga Pro’s Most-Searched Tickers For July 26, 2019
Jul-25-19 04:05PM Smith Micro Reports Second Quarter 2019 Financial Results

Nonetheless, when making a decision with regard to investing, prospective investors should look at far more than just news, especially in the ever evolving tech sector. Here’s what’s going on with Smith Micro Software, Inc..

The Performance That SMSI Investors Have Experienced

Although a move up on a single session, like the move that we’re seeing from Smith Micro Software, Inc. may lead to excitement in some investors, a single session gain by itself shouldn’t be the reason for a decision to, or not to, invest in a stock. It is generally smart to dig into trends just a single trading day. As it relates to SMSI, below are the trends that investors have experienced:

  • Past 5 Sessions – In the past 5 trading sessions, SMSI has produced a price change in the amount of 10.59%.
  • Past 30 Days – The ROI from Smith Micro Software, Inc. over the past 30 days comes to 107.49%.
  • Past 3 Months – Over the past quarter, the company has produced a return on investment that works out to 96.60%
  • Past Six Months – Throughout the last six months, we’ve seen a change that amounts to 244.32% from the stock.
  • YTD – Since the the last trading session of last year SMSI has produced a return of 253.89%.
  • Annually – Lastly, throughout the last full year, investors have seen performance in the amount of 149.80% from SMSI. Throughout this period of time, the stock has sold at a high of -3.48% and a low price of 293.21%.

Ratios To Watch

Looking at various ratios having to do with a stock generally gives traders a look of just how dangerous and/or rewarding a pick may be. Here are some of the most important ratios to look at when digging into SMSI.

Short Ratio – The short ratio is a tool that’s used by investors to measure the amount of short interest. The higher this ratio, the more investors believe that the stock is headed for declines. In general, strong technology stocks tend to have a lower short ratio. However, we tend to see a lot of short squeezes in the industry. Nonetheless, when it comes to Smith Micro Software, Inc., the stock’s short ratio clocks in at 3.06.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Basically, they measure whether or not a company can pay its debts as they mature based on quick assets or current assets. Because in tech, several companies are heavily reliant on the continuation of investor support as they work to bring new technologies to market, the current and quick ratios can seem damning. However, several gems in the technology industry do have great current and quick ratios. When it comes to SMSI, the quick and current ratios total up to 0 and 3.40 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets that are owned by the company. In this particular case, the book to share value ratio equates to 0.83.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of shares. In the case of SMSI, the cash to share value is 0.23.

Big Money And Smith Micro Software, Inc.

One thing that I’ve come to understand so far in my short period alive, or somewhat alive is that smart money tends to follow big money. That is to say, investors that are looking to play it relatively safe will keep their eyes on moves made by institutions as well as those on the inside. With that said, where is the big money when it comes to SMSI? Here’s what’s going on:

  • Institutions – As it stands now, institutions hold 9.50% of SMSI. However, it’s important to consider that institutional ownership has seen a move in the amount of -2.90% throughout the last 3 months.
  • Insiders – As far as insiders go, insiders of the company currently hold 15.70% of the company. Insider ownership of the company has moved -0.93% over the last 3 months.

How Analysts Feel About Smith Micro Software, Inc.

Although it’s rarely a smart idea to blindly follow the opinions of analysts, it is a good idea to use their thoughts to validate your own thoughts before making an investment decision in the technology industry. Below you’ll find the recent moves that we have seen from analysts with regard to SMSI.

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Jul-19-19 Initiated B. Riley FBR Buy $5
Oct-19-15 Downgrade Needham Buy → Hold
Feb-25-15 Upgrade Needham Hold → Buy $2.10
Jan-07-15 Upgrade H.C. Wainwright Neutral → Buy $2
Jul-18-14 Initiated H.C. Wainwright Neutral

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.29. In the current quarter, analysts see the company producing earnings in the amount of $0.04. Over the last 5 years, SMSI has generated revenue in the amount of $-9.20% with earnings coming in at 45.80%. On a quarter over quarter basis, earnings have seen movement of 100.30% and revenue has seen movement of 52.70%.

Looking At Share Counts

Investors and traders seem to have an interest in the total numbers of shares both outstanding and available. With respect to Smith Micro Software, Inc., currently there are 31.74M and there is a float of 21.55M. These numbers mean that out of the total of 31.74M shares of SMSI that are out there today, 21.55M are available to trade hands in the public realm.

It’s also important to dig into the short percentage of the float. Think about it, when a high portion of the float is sold short, the overall feeling among investors is that the company is headed for a steep decline. In regard to SMSI, the percentage of the float that is sold short comes to a total of 10.47%. Most investors would say that a concerning short percent of the float is anything over 40%. Through my work, I’ve seen that a short ratio over 26% is likely a risky play.

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