Sharps Compliance Corp. (SMED) Stock: Here’s Why It’s Falling In Value

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Sharps Compliance Corp. (SMED) is headed down in the market today. The company, one that is focused in the service space, is presently priced at $4.68 after falling -8.59% so far today. When it comes to service sector stocks, there are quite a few factors that have the potential to cause price movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines associated with SMED:

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Oct-30-19 09:35AM Owens-Illinois (OI) Earnings Beat, Sales Miss Estimates in Q3
08:45AM Lindsay’s (LNN) Earnings Beat, Sales Miss Estimates in Q4
Oct-29-19 07:22AM Edited Transcript of SMED earnings conference call or presentation 23-Oct-19 3:00pm GMT
Oct-23-19 11:13AM Caterpillar (CAT) Lags Q3 Earnings Estimates, Trims ’19 View
10:39AM Grainger (GWW) Q3 Earnings & Revenues Miss Estimates, Up Y/Y

Nonetheless, when making a decision with regard to investing, prospective investors should take a look at much more than news, this is especially the case in the ever complex service space. Here’s what’s happing when it comes to Sharps Compliance Corp..

Recent Trends From SMED

While a single session decline, like what we’re seeing from Sharps Compliance Corp. may lead to fear in some investors, that by itself shouldn’t be the basis of a decision to, or not to, invest in a company. It is always a good idea to take a look at trends experienced by the stock beyond a single trading day. When it comes to SMED, below are the movements that investors have seen:

  • Past 5 Sessions – Throughout the last 7 days, SMED has seen a price change that amounts to -2.30%.
  • Past Month – The monthly returns from Sharps Compliance Corp. comes to 13.59%.
  • Past Quarter – Throughout the last 3 months, the company has produced a return on investment that works out to 26.83%
  • Past 6 Months – In the past six months, investors have seen a performance of 37.65% from the company.
  • YTD – Since the close of last year SMED has produced a return of 35.65%.
  • Annually – Finally, in the past year, we have seen performance in the amount of 32.95% from SMED. Throughout this period of time, the stock has sold at a high of -10.86% and a low price of 57.58%.

Key Ratios

Looking at a few ratios having to do with a company can provide prospective traders an understanding of how risky and/or potentially profitable a stock pick may be. Below are a few of the key ratios to look at when looking at SMED.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the level of short interest. As the short ratio goes higher, it means that more investors have a belief that the price of the stock is going to fall. Across the sector, strong service stocks tend to have a lower short ratio. However, we also see a lot of short squeezes in the industry. Nonetheless, in regard to Sharps Compliance Corp., it’s short ratio is 0.24.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Basically, they measure the company’s abilities to pay its debts as they mature with only quick assets or current assets. come with good quick and current ratios. As far as SMED, the quick and current ratios total up to 1.80 and 2.30 respectively.  

Book To Share Value – The book to share value compares the current book value of assets owned by the company to the price of shares. In this case, that ratio comes in at 1.62.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the price of the company’s stock. In the case of SMED, the cash to share value comes to 0.28.

Investors Tend To Follow The Big Money

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 SMED, here’s what we’re seeing:

Institutions own 17.30% of the company. Institutional interest has moved by 0.61% over the past three months. When it comes to insiders, those who are close to the company currently own 14.00% percent of SMED shares. Institutions have seen ownership changes of an accumulative 2.09% over the last three months.

How Analysts Feel About Sharps Compliance Corp.

Although it’s never a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to consider their analysis when validating your own due diligence when it comes to making investment decisions in the service industry. Here are the most recent moves that we’ve seen from analysts when it comes to SMED.

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Jul-24-19 Initiated ROTH Capital Buy $4.50
Oct-26-17 Reiterated Stifel Buy $7 → $6
Aug-14-17 Upgrade First Analysis Sec Equal-Weight → Overweight $8
Aug-12-16 Downgrade First Analysis Sec Overweight → Equal-Weight $9 → $6
Jun-21-16 Reiterated Barrington Research Outperform $9 → $6

What We’ve Seen In earnings results

What have ween seen from SMED in terms of financial results?Here is the data:

  • Analyst Expectations – As it stands at the moment, Wall Street analysts expect that Sharps Compliance Corp. will create earnings per diluted share that comes to 0.13, with 0.05 being announced in the earnings announcement for the current quarter. Although this data isn’t earnings driven, since we’re chatting about Wall St. analysts, the stock is presently rated a 2.00 considering a scale that ranges from 1 to 5 where 1 is the poorest possible Wall Street analyst rating and 5 is the best possible rating.
  • 5-Year Sales – Over the past half decade, Sharps Compliance Corp. has reported a movement in sales volume that works out to 10.80%. EPS in the period have seen a change of -26.50%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings performance, or Q/Q data as it is generally represented in today’s society, the company has seen a change in earnings that amounts to 433.70%. SMED has also seen a change when it comes to sales that adds up to 23.20%.

What You Need To Know About Share Counts

Traders and investors tend to have an interest in the total numbers of shares both available and outstanding. When it comes to Sharps Compliance Corp., currently there are 16.15M and there is a float of 10.46M. This means that out of the total of 16.15M shares of SMED currently in existence today, 10.46M are available to trade hands by the public.

I also find it important to take a look at the short percent. After all, when a large portion of the float is sold short, the overall opinion among traders is that the stock is headed for a steep decline. When it comes to SMED, the short percentage of the float totals up to 0.07%. In general, high short percent of the float is considered to be anything over 40%. In my research, I have found that anything over 26% is usually a play that comes with hefty risk.

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