Performant Financial Corporation (PFMT) Stock: Why It’s Headed Up

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Performant Financial Corporation (PFMT) is working its way for to the top in the market in today’s trading session. The stock, one that is focused in the service industry, is currently trading at $1.10 after a move up of 6.80% so far in today’s session. As it relates to service stocks, there are a number of factors that have the potential to cause movement in the market. News is one of the most common reasons for movement. Here are the most recent stories surrounding PFMT:

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Nov-05-19 04:22PM Performant Financial Corporation to Report Third Quarter 2019 Earnings on November 12, 2019
Nov-01-19 11:30AM Performant Financial (PFMT) May Report Negative Earnings: Know the Trend Ahead of Q3 Release
Oct-14-19 02:57PM Should You Be Pleased About The CEO Pay At Performant Financial Corporation’s (NASDAQ:PFMT)
Sep-19-19 06:53PM Edited Transcript of PFMT earnings conference call or presentation 13-Aug-19 9:00pm GMT
Sep-10-19 09:35PM Performant Financial to Present at the Fall Investor Summit on September 16th-17th in New York City

Nonetheless, any time investors are making a decision to invest, prospective investors should take a look at far more than just news, this is especially the case in the ever highly complex service industry. Here’s what’s going on with Performant Financial Corporation.

Trends That We’ve Seen From PFMT

While a gain in a single session, like the move that we’re seeing from Performant Financial Corporation may make some investors fearful, a single session move by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It’s generally a good idea to look into trends experienced by the stock for a period longer than a single trading session. In the case of PFMT, here are the returns that we have seen:

  • Past 5 Trading Sessions – Over the last five trading sessions, PFMT has seen a change in value amounting to 6.80%.
  • Past 30 Days – The monthly performance from Performant Financial Corporation works out to 11.11%.
  • Past 3 Months – In the past 3 months, the stock has generated a return that works out to -0.90%
  • Bi-Annually – In the last 6 months, we have seen a performance of -37.85% from the company.
  • YTD – Since the close of last year PFMT has produced a return of -51.11%.
  • Full Year – Lastly, throughout the last year, we’ve seen a change in the amount of -36.42% from PFMT. Over this period of time, the stock has sold at a high price of -61.59% and a low of 12.27%.

Ratios Worth Watching

Digging into a few key ratios having to do with a stock can give prospective traders an understanding of just how risky and/or rewarding a stock pick may be. Here are a few of the important ratios to think about when digging into PFMT.

Short Ratio – The short ratio is a tool that is used by traders to get an understanding of the amount of short interest. As the short ratio goes higher, it means that more investors are expecting that the value of the stock is headed for the top. Across the sector, strong service stocks tend to carry a lower short ratio. However, we also tend to see quite a few short squeezes in the sector. Nonetheless, with regard to Performant Financial Corporation, the stock’s short ratio clocks in at 0.83.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay for its debts when they mature based on current assets or quick assets. come with strong current and quick ratios. As it relates to PFMT, the quick and current ratios come to 1.60 and 1.60 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets currently owned by the company to the share price of the stock. as it relates to Performant Financial Corporation, the book to share value ratio works out to 1.20.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the value of the company’s stock. In terms of PFMT, the cash to share value works out to 0.08.

Show Me The Big Money

An interesting fact that I’ve come to understand so far in my brief period in existence is that smart investors tend to follow the moves made by big money. That is to say, investors that want to keep the risk down will keep an eye on moves made by institutional investors as well as insiders of the company. So, where is the big money when it comes to PFMT? Here’s the scoop:

  • Institutions – Currently, institutional investors hold 57.90% of PFMT. Nonetheless, it’s important to note that the ownership held by institutions has seen a move of 0 throughout the last quarter.
  • Investors On The Inside – as it relates to insiders, members of the management team and others close to PFMT currently own 3.00% of Performant Financial Corporation. Insider ownership of the company has seen a move of 135.51% over the past 3 months.

Analyst Opinions Of Performant Financial Corporation

Although it’s never a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to use their thoughts in order to validate your own before making investment decisions in the service industry. Below you’ll find the recent moves that we have seen from analysts as it relates to PFMT.

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Jan-12-18 Upgrade Compass Point Neutral → Buy
Feb-26-16 Reiterated Compass Point Neutral $3 → $2.50
May-07-15 Reiterated Compass Point Neutral $6 → $3.50
Feb-27-15 Downgrade Compass Point Buy → Neutral $10 → $6
Jul-08-14 Reiterated Compass Point Buy $11 → $12

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.05. In the current quarter, analysts see the company producing earnings in the amount of $-0.10. Over the last 5 years, PFMT has generated revenue in the amount of $-9.40% with earnings coming in at -17.20%. On a quarter over quarter basis, earnings have seen movement of -72.40% and revenue has seen movement of 14.40%.

Looking At Share Counts

Investors seem to have a heavy interest in the counts of shares both available and outstanding. As far as Performant Financial Corporation, currently there are 53.69M with a float of 33.01M. These numbers mean that of the total of 53.69M shares of PFMT in existence today, 33.01M are available to trade hands on the public market.

I also find it important to look at the short float. Think about it, if a large percentage of the float is shorted, the overall opinion among traders is that the stock is going to take a dive. As far as it relates to PFMT, the short percentage of the float is currently 0.07%. Most investors would say that a concerning short percent of the float is anything over 40%. However, I’ve calculated that a short ratio over 26% is likely a a play that could prove to be very risky.

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