ARC Document Solutions, Inc. (ARC) Stock: Why It’s Falling

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ARC Document Solutions, Inc. (ARC) is trending down in the market in today’s trading session. The company, focused in the service sector, is presently priced at $1.43 after a move down of -9.49% so far today. As it relates to service stocks, there are quite a few factors that have the ability to lead to movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines centered around ARC:

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Aug-09-19 05:06PM Edited Transcript of ARC earnings conference call or presentation 6-Aug-19 9:00pm GMT
Aug-06-19 04:05PM ARC Reports Results for Second Quarter 2019
Jul-18-19 11:00AM ARC Offers Nationwide HIPAA-Compliant Document Conversion Services
Jul-17-19 01:33PM Did Changing Sentiment Drive ARC Document Solutions’s (NYSE:ARC) Share Price Down A Worrying 65%?
Jul-16-19 10:08AM Commercial Printing Industry’s Near-Term Outlook Bright

Nonetheless, any time investors are making a decision to invest, investors should focus on much more than news, this is especially the case in the ever complex service space. Here’s what’s happing when it comes to ARC Document Solutions, Inc..

The Performance That ARC Investors Have Experienced

While a decline in a single session, like the move that we’re seeing from ARC Document Solutions, Inc. may make some investors fearful, that alone shouldn’t be the basis of a decision to, or not to, invest in a company. It’s generally a good idea to dig into trends further out than a single session. When it comes to ARC, here are the movements that we have seen:

  • Past Seven Days – Over the last week, ARC has seen a change in price in the amount of -25.52%.
  • Past 30 Days – The monthly ROI from ARC Document Solutions, Inc. comes to -28.14%.
  • Past 3 Months – Over the past 3 months, the company has generated a ROI that comes to -30.58%
  • Bi-Annually – In the last six months, we’ve seen a change that works out to -38.63% from the stock.
  • Year To Date – Since the the last trading session of last year ARC has produced a ROI of -30.24%.
  • Annually – Lastly, throughout the past full year, we’ve seen a change of -52.01% from ARC. Throughout this period of time, the stock has traded at a high of -60.21% and a low of -8.92%.

Ratios That Are Notable

Digging into various ratios associated with a stock can give prospective investors an understanding of how risky and/or rewarding a an investment option may be. Here are a few of the most important ratios to look at when digging into ARC.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the stock is going to tumble. In general, strong service sector stocks can have a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the sector. Nonetheless, in regard to ARC Document Solutions, Inc., it’s short ratio is 0.77.

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 with only quick assets or current assets. come with positive current and quick ratios. When it comes to ARC, the quick and current ratios come to 1.00 and 1.20 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the price of shares. In this case, that ratio works out to 3.12.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of shares. In the case of ARC, the cash to share value is 0.40.

Is Big Money Interested In ARC Document Solutions, Inc.

One thing that I have come to understand in my short period on Earth is that good investors tend to follow big money. That is to say, investors that are trying to keep the risk down will keep an eye on investments made by institutions as well as those on the inside. With that said, where is the big money when it comes to ARC? Here’s the scoop:

  • Institutional Investors – As it stands now, institutional investors hold 62.30% of the company. On the other hand, it’s worth noting that the ownership held by institutions has seen a move in the amount of 1.07% throughout the last 3 months.
  • Investors On The Inside – with regard to insiders, those close to the situation currently hold 4.90% of ARC Document Solutions, Inc.. Their ownership of the company has seen a change of 0.00% over the past quarter.

Analyst Opinions With Regard To ARC Document Solutions, Inc.

Although it’s never a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their analysis in order to validate your own when it comes to making an investment decision in the service sector. Here are the recent moves that we have seen from analysts with regard to ARC.

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Nov-08-18 Reiterated B. Riley FBR Buy $3.25 → $3.50
Nov-02-17 Downgrade B. Riley FBR, Inc. Buy → Neutral $5.25 → $4
Oct-20-15 Initiated Sidoti Buy $11
Mar-25-11 Upgrade Robert W. Baird Neutral → Outperform $9 → $12

What We’ve Seen In earnings results

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

  • Analyst Expectations – As it stands, Wall St. analysts are expecting that the company will create earnings per diluted share that totals up to be 0, with 0 being announced in the earnings report for the current quarter. Although this information isn’t earnings driven, since we’re talking about Wall St. analysts, ARC Document Solutions, Inc. is currently graded as a 0 on a scale from 1 to 5 where 1 is the poorest possible Wall St. analyst rating and 5 is the best possible rating.
  • 5-Year Sales – In the past 5 years, ARC Document Solutions, Inc. has announced a movement in sales that adds up to -0.30%. EPS over the last half decade have generated a change of 21.00%.
  • Quarter Over Quarter – when it comes to quarter over quarter data, or Q/Q data as it is often referred to as in the human world, ARC Document Solutions, Inc. has created a change in earnings in the amount of -6.80%. ARC has also experienced a change in regard to sales volume that amounts to -0.60%.

What’s Going On With 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 46.77M shares of ARC Document Solutions, 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, ARC has a float of 39.85M.

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 ARC, the short percent of the float is 0.19%.

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