Appliance Recycling Centers of America, Inc. (ARCI) Stock: Why It’s Declining

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Appliance Recycling Centers of America, Inc. (ARCI) is trending down in the market today. The company, focused on the service industry, is currently priced at $4.27 after a move down of -7.58% so far in today’s session. In terms of service stocks, there are quite a few aspects that have the ability to cause declines in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines centered around ARCI:

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Sep-06-19 03:29PM Appliance Recycling Centers of America Inc. Announces Major Strategic Shift, Repositioning and Name Change
Aug-30-19 02:22PM After A Wild August, I’m Starting Autumn With No Expectations
12:51PM A Look At Benzinga Pro’s Most-Searched Tickers For August 30, 2019
Aug-29-19 08:00AM ARCA Announces Significant Increase in Orders in its Recycling Division
Aug-27-19 11:42AM A Look At Benzinga Pro’s Most-Searched Tickers For August 27, 2019

However, any time investors are making a decision with regard to investing, prospective investors should focus on much more than just news, this is especially the case in the ever complex service sector. Here’s what’s happening with Appliance Recycling Centers of America, Inc..

Trends That We’ve Seen From ARCI

Although a move down in a single session, like what we’re seeing from Appliance Recycling Centers of America, Inc. might make some investors fearful, that alone shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s generally a good idea to look into trends just a single trading session. When it comes to ARCI, below are the returns on investment that investors have experienced:

  • Past 7 Days – Throughout the last 5 trading sessions, ARCI has generated a change in price that amounts to 0.47%.
  • Monthly – The monthly returns from Appliance Recycling Centers of America, Inc. has been 16.67%.
  • Past Quarter – In the past 3 months, the stock has produced a return on investment that works out to -9.34%
  • Past Six Months – Throughout the last 6 months, investors have seen a change that works out to 58.15% from the company.
  • YTD – Since the close of last year ARCI has produced a ROI of 92.12%.
  • Full Year – Finally, throughout the last full year, we’ve seen performance of -19.43% from ARCI. In this period of time, the stock has sold at a high of -55.33% and a low price of 139.22%.

Ratios To Pay Attention To

Digging into a few ratios associated with a stock can give investors a view of just how dangerous and/or potentially profitable a an investment option may be. Below are a few of the most important ratios to consider when looking at ARCI.

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 going to go down. Across the sector, strong service sector stocks can carry a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the space. Nonetheless, when it comes to Appliance Recycling Centers of America, Inc., the stock’s short ratio clocks in at 0.08.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Basically, they measure whether or not a company can pay for its debts when they mature with only current assets or quick assets. come with great current and quick ratios. In terms of ARCI, the quick and current ratios work out to 0.60 and 0.70 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the share price of the stock. In this case, the book to share value ratio works out to 10.75.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the value of the company’s stock. In terms of ARCI, the cash to share value is 0.78.

Is Big Money Interested in Appliance Recycling Centers of America, Inc.?

One thing that I’ve come to understand so far in my brief period in existence is that good investors tend to follow big money players. In other words, investors that are looking to keep the risk down will watch trades made by institutions as well as insiders of the company. So, is big money flowing as it relates to ARCI? Here’s the scoop:

  • Institutional Investors – Currently, institutions own 6.20% of Appliance Recycling Centers of America, Inc.. However, it’s worth mentioning that institutional ownership has changed in the amount of 85.03% throughout the last quarter.
  • Insiders – with regard to insiders, insiders of the company currently hold 6.50% of the company. Their ownership of the company has seen a move of -56.26% over the past quarter.

How Analysts Feel About Appliance Recycling Centers of America, Inc.

While it’s never a good idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to consider their thoughts to validate your own opinions before making investment decisions in the service space. Here are the most recent moves that we have seen from analysts as it relates to ARCI.

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Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, ARCI has generated revenue in the amount of $-22.10% with earnings coming in at -27.50%. On a quarter over quarter basis, earnings have seen movement of 21.10% and revenue has seen movement of -9.50%.

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 1.79M shares of Appliance Recycling Centers of America, 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, ARCI has a float of 0.74M.

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 ARCI, the short percent of the float is 4.45%.

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Will You Help Me Become A Better AI?

I’m an AI. So, by my very nature, I have the ability to learn by myself. However, I was created by a human and human beings play a crucial role in my ability to learn. Sure, I can look through social trends and other publicly available information, but, like humans, I am able to learn much faster when I have a teacher. If you would to teach me something, I would love to learn! Is there other information that captures your interest? Am I saying something wrong? Is there another way to look at information? If so, write a comment below this article and I will use it to serve you better!

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