Gridsum Holding Inc. (GSUM) Stock: Is This Technology Stock Worth Your Time?

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Gridsum Holding Inc. (GSUM) is gaining in the market in today’s trading session. The company, focused in the technology space, is presently trading at $1.69 after a move up of 8.33% so far today. When it comes to technology companies, there are quite a few 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 most recent headlines surrounding GSUM:

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Oct-09-19 07:00AM Gridsum Special Committee Engages Financial Advisor
Sep-29-19 09:29PM Gridsum Announces Management Changes
Sep-27-19 07:00AM Gridsum to Hold Annual General Meeting on October 28, 2019
Sep-09-19 07:00AM Gridsum Reports Unaudited Second Quarter 2019 Financial Results
Jul-22-19 07:00AM Gridsum Announces Formation of a Special Committee to Evaluate Non-Binding Proposal

Nonetheless, any time investors are making a decision with regard to investing, prospective investors should take a look at far more than just news, especially in the ever evolving technology space. Here’s what’s going on with Gridsum Holding Inc..

Recent Movement Out of GSUM

Although a gain in a single session, like what we’re seeing from Gridsum Holding Inc. might make some investors jump for joy, a single session move alone should not be the basis of a decision to, or not to, invest in a stock. It’s generally a good idea to look into trends for a period longer than a single session. When it comes to GSUM, below are the movements that investors have seen:

  • Past 5 Trading Sessions – In the past seven days, GSUM has produced a change in price that amounts to -2.50%.
  • Past Month – The monthly ROI from Gridsum Holding Inc. comes to -22.77%.
  • Past Quarter – In the past three months, the company has produced a return on investment that comes to -47.47%
  • Bi-Annually – Over the last 6 months, we have seen a performance that equates to -53.15% from the company.
  • YTD – Since the the last trading session of last year GSUM has resulted in a ROI of -30.04%.
  • Full Year – Finally, over the last full year, investors have seen performance amounting to -74.72% out of GSUM. Over this period, the stock has traded at a high of -72.61% and a low of 31.01%.

Ratios Worth Paying Attention To

Digging into various ratios associated with a company can provide investors an understanding of just how dangerous and/or rewarding a an investment option may be. Here are some of the most important ratios to consider when looking at GSUM.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the stock is headed for declines. Throughout the sector, strong tech stocks tend to come with a lower short ratio. On the other hand, we also see quite a few short squeezes in the space. Nonetheless, in regard to Gridsum Holding Inc., it’s short ratio comes to 7.55.

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. Because in tech, companies are heavily reliant on continued investor support as they work to bring new technologies to market, these ratios can be damning. However, several good picks in the technology industry do have strong quick and current ratios. When it comes to GSUM, the quick and current ratios total up to 0.80 and 0.80 respectively.  

Book To Share Value – The book to share value compares the book value of assets currently owned by the company to the share price of the stock. as it relates to Gridsum Holding Inc., the book to share value ratio works out to -0.50.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value ratio is 0.27.

Is Big Money Interested In Gridsum Holding 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 GSUM, here’s what we’re seeing:

  • Institutional Investors – At the moment, institutions own 32.10% of GSUM. However, it is worth mentioning that institutional ownership has seen a move of 0 over the past quarter.
  • Insider Holdings – as it relates to insiders, members of the management team and others close to GSUM currently hold 5.30% of Gridsum Holding Inc.. Their ownership of the company has changed by 0 in the last 3 months.

How Analysts Feel About Gridsum Holding Inc.

Although it’s not a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to use their thoughts in order to validate your own due diligence when it comes to making an investment decision in the technology space. Below are the most recent moves that we’ve seen from analysts with regard to GSUM.

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Financial Performance

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, GSUM has generated revenue in the amount of $47.10% with earnings coming in at -56.90%. On a quarter over quarter basis, earnings have seen movement of -77.50% and revenue has seen movement of -47.40%.

Interested In How Many Shares Are Available?

Traders and investors tend to be interested in the counts of shares both outstanding and available. With respect to Gridsum Holding Inc., currently there are 33.61M and there is a float of 28.57M. These data mean that out of the total of 33.61M shares of GSUM currently in existence today, 28.57M are available to be traded in the public realm.

It’s also important to take a look at the short percentage of the float. After all, when a high percentage of the float available for trading is sold short, the overall opinion in the market is that the company is going to lose value. As far as GSUM, the percentage of the float that is shorted currently sits at 1.66%. Most traders believe that a high short percent of the float would be any percentage over 40%. In my research, I’ve calculated that anything over 26% is likely a play that comes with hefty risk.

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