Vuzix Corporation (VUZI) Stock: Here’s Why It’s Headed For The Bottom

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Vuzix Corporation (VUZI) is headed up in the market today. The stock, one that is focused in the tech industry, is presently priced at $2.18 after a move down of -5.22% so far today. In terms of tech stocks, there are several factors that have the ability to cause movement in the market. News is one of the most common reasons for movement. Here are the recent headlines surrounding VUZI:

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Nov-08-19 10:57PM Edited Transcript of VUZI earnings conference call or presentation 7-Nov-19 9:30pm GMT
Nov-07-19 04:05PM Vuzix Reports Third Quarter 2019 Results
04:01PM Vuzix Receives $7.1 Million Order from “SWORD” in Advance of Global Security Product Rollout
Nov-05-19 11:05AM ­Vuzix Announces Collaboration with Ubimax to Support World’s First Everything-as-a-Service Smart Glasses Offering
Nov-01-19 01:48PM Some Vuzix (NASDAQ:VUZI) Shareholders Have Copped A Big 61% Share Price Drop

Nonetheless, when making a decision with regard to investing, prospective investors should focus on much more than news, especially in the ever changing technology industry. Here’s what’s going on with Vuzix Corporation.

Trends That We’ve Seen From VUZI

Although a move toward the top in a single session, like the move that we’re seeing from Vuzix Corporation might lead to fear in some investors, a single session move alone should not be the reason for a decision to, or not to, invest in a company. It is always a good idea to look into trends experienced by the stock further out than a single trading day. In the case of VUZI, below are the returns on investment that investors have seen:

  • Weekly – In the past seven days, VUZI has seen a change in price that amounts to -12.10%.
  • Past 30 Days – The performance from Vuzix Corporation throughout the past 30 days comes to -6.44%.
  • Past Three Months – Throughout the past three months, the company has produced a return on investment that comes to 12.37%
  • Bi-Annually – Throughout the previous six months, investors have seen a performance that works out to -13.49% from the stock.
  • YTD – Since the open of this year VUZI has produced a return on investment of -54.68%.
  • Annually – Finally, over the past year, we’ve seen performance in the amount of -66.10% out of VUZI. Over this period of time, the stock has sold at a high price of -66.92% and a low of 23.16%.

Crucial Ratios

Looking at various key ratios having to do with a company can give prospective investors a view of how dangerous and/or rewarding a an investment option may be. Below are a few of the important ratios to consider when digging into VUZI.

Short Ratio – The short ratio is a measure of short interest. As the ratio heads up, it means that more investors have a belief that the price of the stock is going to fall. Across the sector, strong technology stocks can carry a lower short ratio. However, we also tend to see quite a few short squeezes in the industry. Nonetheless, as it relates to Vuzix Corporation, it’s short ratio clocks in at 9.47.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure If a company is able to pay for its debts when they come due with only current assets or quick assets. In the tech space, several companies are heavily reliant on the continuation of support from investors as they work to bring new technologies to market, these ratios can be bad. However, several better companies in the tech industry do have good current and quick ratios. As far as VUZI, the quick and current ratios add up to 2.00 and 4.70 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets that are owned by the company. In this case, the book to share value ratio equates to 0.72.

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 VUZI, the cash to share value is 0.10.

Is Big Money Interested In Vuzix Corporation

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 VUZI, here’s what we’re seeing:

  • Institutions – Currently, institutions own 28.90% of Vuzix Corporation. Nonetheless, it’s important to mention that institutional ownership has seen a move in the amount of 41.78% over the last quarter.
  • Insider Holdings – As far as insiders go, members of the management team and others close to VUZI currently own 9.00% of the company. Insider ownership of the company has moved 0 throughout the past 3 months.

Analyst Opinions Of Vuzix Corporation

Although it’s not a good idea to blindly follow the opinions of analysts, it is a smart idea to use their analysis in order to validate your own opinions when it comes to making investment decisions in the tech sector. Below are the recent moves that we’ve seen from analysts as it relates to VUZI.

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Oct-28-16 Initiated Maxim Group Buy $11
Dec-14-15 Reiterated Chardan Capital Markets Buy $7 → $10
Dec-10-15 Initiated Rodman & Renshaw Buy $10
Sep-28-15 Resumed Chardan Capital Markets Buy $7
Aug-17-15 Reiterated Chardan Capital Markets Buy $10 → $7

What We’ve Seen In Financial Results

What have ween seen from VUZI in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – Currently, Wall St. analysts are expecting that the company will generate EPS that comes to -0.48, with -0.14 to be reported in the report for the current quarter. Although this isn’t tide to earnings, since we’re chatting on the topic of Wall Street analysts, Vuzix Corporation is currently rated a 0 considering a scale that ranges from 1 to 5 on which 1 is the poorest Wall St. analyst rating and 5 is the best.
  • 5-Year Sales – In the past 5 years, Vuzix Corporation has announced a change in sales volume that works out to 27.60%. Earnings over the last 5 years have seen a change of 12.40%.
  • Q/Q – when it comes to quarter over quarter data, or Q/Q data as it is often referred to as in the human world, Vuzix Corporation has experienced a change in earnings that comes to a total of 17.00%. VUZI has also experienced a change when it comes to sales that amounts to -15.40%.

What’s Going On With Share Counts?

Traders and investors seem to have a heavy interest in the amounts of shares both available and outstanding. In terms of Vuzix Corporation, there are currently 34.91M and there is a float of 29.11M. These data mean that of the total of 34.91M shares of VUZI that are out there today, 29.11M are available to trade hands on the public market.

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 VUZI, the short percent of the float is 10.57%.

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