LINE Corporation (LN) Stock: A Good Pick In The technology Industry?

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LINE Corporation (LN) is gaining in the market today. The company, one that is focused on the technology industry, is currently trading at $51.63 after heading up 26.61% so far in today’s session. As it relates to tech companies, there are several 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 stories associated with LN:

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Nov-13-19 10:00PM Japan shares slip to 1-week lows; Line, Z Holdings jump on merger talks news
08:39PM SoftBank Considers Combining Yahoo Japan With Line Service
06:24PM SoftBank’s Z Holdings says in merger talks with line
06:24PM SoftBank’s Z Holdings confirms merger talks with Line
06:24PM SoftBank’s Yahoo Japan confirms merger talks with Line, shares jump

However, any time investors are making a decision to invest, investors should focus on far more than news, this is especially the case in the ever evolving technology industry. Here’s what’s going on with LINE Corporation.

Recent Movement From LN

While a single session gain, like the move that we’re seeing from LINE Corporation may cause excitement in some investors, a single session gain by itself shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s generally smart to look into trends experienced by the stock just a single session. As it relates to LN, below are the trends that investors have experienced:

  • Past 7 Days – In the last 7 days, LN has generated a price change amounting to 35.41%.
  • Past 30 Days – The monthly returns from LINE Corporation has been 41.26%.
  • Past 3 Months – Over the last 3 months, the stock has produced a return that works out to 60.84%
  • Past Six Months – In the last six months, investors have seen a performance that works out to 55.51% from the company.
  • This Year So Far – Since the the last trading session of last year LN has resulted in a ROI of 51.36%.
  • Full Year – Finally, in the past year, we have seen a change amounting to 77.85% out of LN. Throughout this period of time, the stock has sold at a high of 25.99% and a low price of 90.94%.

Ratios Worth Watching

Digging into various key ratios having to do with a company can provide investors a look of how dangerous and/or potentially profitable a stock pick may be. Below are a few of the important ratios to look at when digging into LN.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors have a belief that the stock is headed for declines. In general, strong tech stocks can have a lower short ratio. However, we also tend to see a lot of short squeezes in the space. Nonetheless, in relation to LINE Corporation, it’s short ratio is 8.58.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure whether or not a company can pay for its debts when they come due with only current assets or quick assets. In the technology sector, companies rely on continued support from investors as they work to bring new technologies to market, the quick and current ratios can be bad. Nonetheless, quite a few gems in the technology industry do have great quick and current ratios. In terms of LN, the quick and current ratios work out to 1.90 and 2.00 respectively.  

Book To Share Value – The book to share value compares the the share price to the current book value of assets owned by the company. In this particular case, the book to share value ratio equates to 6.30.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the value of shares. When it comes to LN, the cash to share value ratio is 8.49.

What Institutions And Insiders Think Of LINE 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 LN, here’s what we’re seeing:

  • Institutional Investors – Currently, institutional investors hold 3.80% of LN. Nonetheless, it’s important to mention that institutional ownership has changed in the amount of -0.66% over the past quarter.
  • Investors On The Inside – As far as insiders go, those close to the situation currently own 64.09% of LINE Corporation. Their ownership of the company has changed in the amount of 0.00% throughout the last quarter.

How Analysts Feel About LINE Corporation

Although it’s never a good idea to blindly follow the opinions of analysts, it is a smart idea to use their analysis to validate your own thoughts when it comes to making investment decisions in the technology space. Here are the most recent moves that we’ve seen from analysts with regard to LN.

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Sep-11-19 Upgrade Credit Suisse Underperform → Neutral
Jun-24-19 Upgrade Goldman Sell → Neutral
Mar-14-19 Downgrade Credit Suisse Neutral → Underperform
Feb-08-19 Downgrade Goldman Neutral → Sell
Jan-18-19 Downgrade Jefferies Hold → Underperform

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.04. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, LN has generated revenue in the amount of $42.80% with earnings coming in at -8.10%. On a quarter over quarter basis, earnings have seen movement of 18.60% and revenue has seen movement of 10.60%.

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 245.13M shares of LINE Corporation 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, LN has a float of 56.61M.

It’s also important to dig into the short float. After all, when a large percentage of the float available for trading is shorted, the overall feeling among traders is that the stock is going to fall hard. As far as LN, the short percentage of the float is currently 1.24%. In general, concerning short percent of the float is anything over 40%. However, I have found that any short percent of the float over 26% is probably going to be a risky play.

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