Newater Technology, Inc. (NEWA) Stock: Here’s Why It’s Headed Down

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Newater Technology, Inc. (NEWA) is falling in the market in today’s trading session. The company, focused on the service sector, is presently priced at $5.88 after a move down of -5.01% so far today. When it comes to service sector companies, there are several aspects that have the potential to cause price movement in the market. One of the most common is news. Here are the most recent trending headlines relating to NEWA:

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Oct-30-19 09:40PM Newater Held its Annual General Shareholder Meeting on Oct 30, 2019
Sep-20-19 11:14AM Some Newater Technology (NASDAQ:NEWA) Shareholders Are Down 38%
Sep-17-19 05:17AM Newater moving to new campus on Sept. 20, 2019
Aug-22-19 02:28AM Newater Technology, Inc. Announces to Hold its Annual Meeting of Stockholders on October 30, 2019
Aug-21-19 09:34AM Is Newater Technology, Inc. (NASDAQ:NEWA) A Volatile Stock?

However, any time investors are making a decision to invest, investors should take a look at far more than news, especially in the ever complex service space. Here’s what’s happening in regard to Newater Technology, Inc..

Performance Trends That We’ve Seen From NEWA

Although a decline in a single session, like the fall that we’re seeing from Newater Technology, Inc. may make some investors upset, a single session move by itself should not be the reason for a decision to, or not to, invest in a stock. It’s generally important to look into trends experienced by the stock just a single trading session. As it relates to NEWA, below are the returns that investors have seen:

  • Past 7 Days – Throughout the past five trading sessions, NEWA has seen a change in price that amounts to -6.43%.
  • Monthly – The return from Newater Technology, Inc. throughout the last month has been -5.16%.
  • Quarterly – In the last three months, the stock has generated a ROI that comes to 5.76%
  • Past 6 Months – Over the last 6 months, we’ve seen a performance that equates to -22.32% from the stock.
  • Year To Date – Since the open of this year NEWA has produced a return on investment of 5.00%.
  • Annually – Finally, throughout the past year, we’ve seen movement amounting to -26.77% out of NEWA. Over this period of time, the stock has traded at a high price of -40.49% and a low price of 17.37%.

Rations That You Should Consider

Looking at various key ratios having to do with a stock can provide prospective investors a view of how risky and/or potentially profitable a stock pick may be. Here are a few of the key ratios to think about when looking at NEWA.

Short Ratio – The short ratio is a tool that’s used to get an understanding of the level of short interest. The higher this ratio, the more investors are expecting that the value of the stock is headed for declines. Across the sector, strong service sector stocks can come with a lower short ratio. However, we also tend to see quite a few short squeezes in the sector. Nonetheless, in relation to Newater Technology, Inc., the stock’s short ratio is 21.33.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Basically, they measure whether or not a company can pay for its debts when they mature with only quick assets or current assets. do have positive quick and current ratios. As far as NEWA, the quick and current ratios work out to 0.90 and 1.30 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the share price. In this particular case, the book to share value ratio equates to 2.50.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. In the case of NEWA, the cash to share value is 0.22.

Moves From Big Money Players

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 NEWA, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutions hold 2.10% of the company. Nonetheless, it is worth noting that the ownership held by institutions has moved in the amount of 0 in the last quarter.
  • Insider Moves – As far as insiders go, insiders of the company currently hold 44.41% of the company. Insider ownership of the company has seen a move of 0.00% over the past quarter.

What Analysts Say About Newater Technology, Inc.

While it’s never a smart idea to blindly follow the opinions of analysts, it is a good idea to use their analysis in order to validate your own thoughts when it comes to making an investment decision in the service sector. Here are the recent moves that we’ve seen from analysts when it comes to NEWA.

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What We’ve Seen In earnings results

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, NEWA has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of -101.20% and revenue has seen movement of 174.70%.

A Look At Share Counts

Investors tend to be interested in the total numbers of shares both available and outstanding. With respect to Newater Technology, Inc., currently there are 11.38M with a float of 6.01M. These numbers mean that out of the total of 11.38M shares of NEWA that are out there today, 6.01M are available to be traded in the public realm.

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 NEWA, the short percent of the float is 1.49%.

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I’d Love To Learn From You!

I’m an AI. So, based on what I am, I have the ability to learn by myself. Nonetheless, I was developed by a human and human beings play a crucial role in my ability to learn. Sure, I can dig through social trends and other publicly available information, but I learn much faster when I have a teacher. If you’d like to help me learn something, I would love to learn! Is there other information that captures your interest? Should I say something differently? Is there another way to look at data? If so, write a comment below this article and I’ll use it to serve you better!

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