Marchex, Inc. (MCHX) Stock: Here’s Why It’s Falling In Value

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Marchex, Inc. (MCHX) is working its way for to the bottom in the market in today’s trading session. The company, focused on the service space, is presently priced at $3.33 after falling -8.01% so far today. As it relates to service sector companies, there are several aspects that have the ability to lead to movement in the market. One of the most common is news. Here are the recent stories relating to MCHX:

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Aug-07-19 07:35PM Marchex (MCHX) Meets Q2 Earnings Estimates
04:15PM Marchex Announces Second Quarter 2019 Results
Aug-06-19 08:00AM Marchex Launches Sales Edge, an AI-Based Product Suite to Drive Increased Sales for Enterprise and Local Businesses
Jul-31-19 09:01AM Marchex to Report Second Quarter 2019 Results on August 7
Jul-18-19 09:01AM Marchex AI Leader Featured at the 15th International Conference on Machine Learning and Data Mining

Nonetheless, when making an investing decision, prospective investors should look at far more than news, this is especially the case in the ever complex service space. Here’s what’s happing when it comes to Marchex, Inc..

Returns That MCHX Investors Have Seen

While a single session decline, like the fall that we’re seeing from Marchex, Inc. may lead to fear in some investors, a single session move by itself shouldn’t be the basis of a decision to, or not to, invest in a company. It’s generally smart to look at trends experienced by the stock beyond a single trading session. When it comes to MCHX, here are the returns on investment that investors have seen:

  • Past 5 Trading Sessions – In the last 7 days, MCHX has seen a price change amounting to -20.71%.
  • Past 30 Days – The monthly returns from Marchex, Inc. comes to -30.91%.
  • Past Three Months – Over the last three months, the stock has generated a return on investment that comes to -34.45%
  • Past 6 Months – Throughout the previous six months, investors have seen a change that works out to -21.46% from the stock.
  • This Year So Far – Since the close of last year MCHX has produced a return of 25.66%.
  • Annually – Finally, in the past year, investors have seen a change that works out to 20.22% out of MCHX. Over this period, the stock has sold at a high price of -40.22% and a low price of 34.82%.

Ratios That Are Notable

Looking at various key ratios having to do with a company generally gives prospective traders a view of just how dangerous and/or rewarding a stock pick may be. Below are some of the most important ratios to consider when looking at MCHX.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors are expecting that the price of the stock is going to fall. Throughout the sector, strong service sector stocks tend to come with a lower short ratio. On the other hand, we also see quite a few short squeezes in the sector. Nonetheless, as it relates to Marchex, Inc., it’s short ratio comes to 3.51.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure If a company is able to cover its debts when they come due using quick assets or current assets. do have good current and quick ratios. As far as MCHX, the quick and current ratios work out to 3.50 and 3.50 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets owned by the company. In the case of Marchex, Inc., that ratio works out to 2.10.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of shares. In this case, the cash to share value is 1.20.

Smart Money Follows Big Money

An interesting fact I’ve learned in my brief period alive, or somewhat alive has been that smart money tends to follow big money. That is to say, investors that are looking to play it relatively safe will pay close attention to moves made by institutional investors and insiders. With that said, what does the big money picture look like as it relates to MCHX? Here’s the scoop:

  • Institutions – Currently, institutions own 75.10% of Marchex, Inc.. Nonetheless, it is important to note that institutional ownership has moved in the amount of 0.25% throughout the last 3 months.
  • Insiders – as it relates to insiders, insiders of the company currently hold 3.60% of Marchex, Inc.. Their ownership of the company has seen a move of 22.33% over the last 3 months.

What Analysts Think About Marchex, Inc.

While it’s not a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to consider their thoughts when validating your own due diligence before making an investment decision in the service space. Here are the most recent moves that we’ve seen from analysts as it relates to MCHX.

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Jan-28-19 Upgrade ROTH Capital Neutral → Buy
Aug-10-16 Downgrade ROTH Capital Buy → Neutral
Feb-19-16 Reiterated RBC Capital Mkts Outperform $6 → $5
Dec-22-15 Initiated ROTH Capital Buy $6
Nov-05-15 Reiterated RBC Capital Mkts Outperform $5.50 → $6

What We’ve Seen In earnings results

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

  • Analyst Expectations – As it stands, analysts expect that the company will create earnings per diluted share that comes to 0.01, with 0.01 to be announced in the next financial report. Although this isn’t earnings driven, because we are talking about Wall St. analysts, MCHX is currently graded as a 2.00 on a scale from 1 to 5 on which 1 is the poorest Wall St. analyst rating and 5 is the best possible.
  • 5-Year Sales – Over the past 5 years, Marchex, Inc. has reported a movement in sales that adds up to -10.40%. Earnings per diluted share through the past half decade have generated a change of -5.30%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings performance, or Q/Q data as it is often represented in the world of humans, MCHX has experienced a earnings change by -34.70%. Marchex, Inc. has also seen movement in terms of revenue that adds up to 20.50%.

Looking At Share Counts

Traders seem to be interested in the amounts of shares both available and outstanding. As it relates to Marchex, Inc., there are currently 42.36M with a float of 34.16M. These data mean that of the total of 42.36M shares of MCHX that are out there today, 34.16M are able to be traded on the market.

I also find it important to follow the short percent. After all, if a large portion of the float is sold short, the overall opinion among investors is that the company is going to take a dive. As far as it relates to MCHX, the percentage of the float that is currently being sold short is 2.43%. Most traders believe that a high short percent of the float is any percentage over 40%. In my research, I’ve seen that a short ratio over 26% is usually a risky play.

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