Monro, Inc. (MNRO) Stock: Why It’s Headed Down

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Monro, Inc. (MNRO) is working its way for to the bottom in the market today. The company, one that is focused in the service industry, is currently priced at $68.85 after falling -14.53% so far in today’s session. In terms of service stocks, there are several aspects that have the ability to lead to price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines centered around MNRO:

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Oct-24-19 08:45AM Monro Muffler Brake (MNRO) Q2 Earnings and Revenues Miss Estimates
07:30AM Monro, Inc. Announces Second Quarter Fiscal 2020 Financial Results
Oct-17-19 10:34AM Monro Muffler Brake (MNRO) Earnings Expected to Grow: Should You Buy?
Oct-10-19 07:30AM Monro, Inc. to Report Second Quarter Fiscal 2020 Earnings on October 24, 2019
Oct-08-19 10:22AM Was Monro, Inc.’s (NASDAQ:MNRO) Earnings Growth Better Than The Industry’s?

Nonetheless, when making a decision with regard to investing, prospective investors should look into far more than just news, especially in the ever complex service industry. Here’s what’s happing when it comes to Monro, Inc..

Recent Moves From MNRO

While a decline in a single session, like the move that we’re seeing from Monro, Inc. may lead to fear in some investors, that alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It’s generally important to take a look at trends experienced by the stock further out than a single trading day. When it comes to MNRO, here are the movements that we’ve seen:

  • Past 7 Days – Over the last 5 trading sessions, MNRO has produced a price change in the amount of 2.14%.
  • Past Month – The return from Monro, Inc. throughout the last 30 days has been 2.90%.
  • Past Three Months – Throughout the last 3 months, the company has generated a return on investment of -2.94%
  • Past Six Months – Over the last 6 months, we’ve seen a change that amounts to 0.47% from the company.
  • YTD – Since the open of this year MNRO has resulted in a ROI of 17.16%.
  • Annually – Finally, in the past full year, we have seen movement that works out to 19.46% from MNRO. Over this period, the stock has traded at a high of -23.26% and a low price of 13.28%.

Rations That Investors Should Think About

Digging into various ratios associated with a company generally gives prospective investors an understanding of just how risky and/or potentially profitable a pick might be. Below are some of the important ratios to look at when digging into MNRO.

Short Ratio – The short ratio is a measure of short interest. As the ratio climbs, it means that more investors have a belief that the value of the stock is going to tumble. In general, strong service stocks tend to come with a lower short ratio. However, we also tend to see quite a few short squeezes in the industry. Nonetheless, as it relates to Monro, Inc., the stock’s short ratio comes to 14.96.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure If a company is able to pay for its debts when they come due using current assets or quick assets. do have great current and quick ratios. As far as MNRO, the quick and current ratios total up to 0.30 and 0.90 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the current book value of assets that are owned by the company. when it comes to Monro, Inc., that ratio equates to 21.65.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the price of shares. In the case of MNRO, the cash to share value is 0.26.

Big Money And Monro, 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 MNRO, here’s what we’re seeing:

Institutions own 99.40% of the company. Institutional interest has moved by 0.54% over the past three months. When it comes to insiders, those who are close to the company currently own 2.20% percent of MNRO shares. Institutions have seen ownership changes of an accumulative -1.41% over the last three months.

How Analysts Feel About Monro, Inc.

Although it’s not a smart idea to blindly follow the thoughts of analysts, it is a good idea to consider their analysis when validating your own due diligence before making investment decisions in the service sector. Below are the most recent moves that we’ve seen from analysts with regard to MNRO.

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Aug-09-19 Initiated BMO Capital Markets Market Perform $90
Jul-11-19 Downgrade Oppenheimer Outperform → Perform
Apr-04-19 Downgrade Guggenheim Buy → Neutral
Jul-13-18 Upgrade Goldman Neutral → Buy
Mar-23-18 Initiated SunTrust Hold

Financial Results And Expectations

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

  • Analyst Expectations – As it stands at the moment, analysts are expecting that Monro, Inc. will generate earnings per diluted share that totals up to be 3.02, with 0.72 being announced in the next financial report. Although this is not based on earnings, since we are chatting on the topic of analysts, MNRO is currently rated a 3.00 considering a scale that ranges from 1 to 5 where 1 is the worst average Wall Street analyst grade and 5 is the best.
  • 5-Year Sales – Throughout the past half decade, Monro, Inc. has created a movement in revenue that works out to 7.60%. Earnings per share through the last 5 years have generated movement in the amount of 7.30%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings performance, or Q/Q data as it is often referred to as in the world of humans, the company has experienced a earnings change by 7.90%. MNRO has also moved the needle when it comes to sales in the amount of 7.20%.

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 33.33M shares of Monro, 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, MNRO has a float of 32.61M.

It’s also important to follow the short float. After all, when a high portion of the float available for trading is sold short, the overall opinion among traders is that the company is going to lose value. As far as it relates to MNRO, the percentage of the float that is currently being sold short sits at 12.97%. Most traders believe that a concerning short percent of the float would be considered to be anything over 40%. Through my work, I have seen that any short percent of the float over 26% is probably going to be a play that comes with hefty risk.

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