ServiceSource International, Inc. (SREV) Stock: A Strong Pick In The Service Space?


ServiceSource International, Inc. (SREV) is working its way for to the bottom in the market today. The company, focused on the service sector, is currently priced at $1.23 after falling -5.38% so far in today’s session. When it comes to service stocks, there are quite a few aspects 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 SREV:

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Nov-04-19 09:56AM ServiceSource International, Inc. (SREV) Shares March Higher, Can It Continue?
01:36AM Edited Transcript of SREV earnings conference call or presentation 30-Oct-19 1:30pm GMT
Oct-29-19 06:45PM ServiceSource (SREV) Reports Q3 Loss, Tops Revenue Estimates
04:05PM ServiceSource Reports Third Quarter 2019 Financial Results
Oct-11-19 09:05AM ServiceSource to Hold Third Quarter 2019 Financial Results Call on October 30th, 2019

However, when making a decision to invest, prospective investors should focus on much more than news, this is especially the case in the ever complex service space. Here’s what’s happening with ServiceSource International, Inc..

Returns That SREV Investors Have Seen

While a move down in a single session, like the move that we’re seeing from ServiceSource International, Inc. might make some investors fearful, that by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It’s generally important to take a look at trends further out than a single trading day. As it relates to SREV, here are the returns that we’ve seen:

  • Past 7 Days – In the past 7 days, SREV has produced a change in price that amounts to 4.24%.
  • Monthly – The monthly ROI from ServiceSource International, Inc. has been 29.76%.
  • Past Quarter – Throughout the past three months, the company has generated a return that comes to 63.93%
  • Bi-Annually – In the previous six months, we have seen a change that equates to 25.81% from the stock.
  • This Year So Far – Since the open of this year SREV has produced a return on investment of 13.89%.
  • Annually – Finally, over the past year, investors have seen performance that works out to -15.17% from SREV. Throughout this period, the stock has sold at a high of -16.89% and a low price of 76.75%.

Ratios Of Note

Looking at various ratios having to do with a company generally gives prospective investors a look of how dangerous and/or rewarding a an investment option might be. Below are a few of the key ratios to think about when digging into SREV.

Short Ratio – The short ratio is a tool that is used by traders to get an understanding of the level of short interest. The higher this ratio, the more investors have a belief that the value of the stock is going to tumble. Throughout the sector, strong service stocks can carry a lower short ratio. However, we also tend to see quite a few short squeezes in the industry. Nonetheless, in relation to ServiceSource International, Inc., the stock’s short ratio comes to 2.04.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure the company’s abilities to cover its debts as they mature with only current assets or quick assets. do have positive quick and current ratios. As far as SREV, the quick and current ratios come to 2.20 and 2.20 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the price of shares. In this case, the book to share value ratio is 0.95.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the value of the company’s stock. In the case of SREV, the cash to share value ratio is 0.

What Are Big Money Players Doing With ServiceSource International, Inc.

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 SREV, here’s what we’re seeing:

Institutions own 83.80% of the company. Institutional interest has moved by 5.22% over the past three months. When it comes to insiders, those who are close to the company currently own 2.30% percent of SREV shares. Institutions have seen ownership changes of an accumulative 11.49% over the last three months.

How Analysts Feel About ServiceSource International, Inc.

While it’s rarely a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to use their opinions to validate your own opinions before making an investment decision in the service space. Here are the most recent moves that we have seen from analysts with regard to SREV.

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Feb-21-19 Downgrade B. Riley FBR Buy → Neutral $1.75 → $1.25
Nov-08-18 Reiterated B. Riley FBR Buy $3 → $2
Oct-19-18 Downgrade JMP Securities Mkt Outperform → Mkt Perform
Mar-27-18 Initiated B. Riley FBR, Inc. Buy $5
Feb-22-17 Downgrade Northland Capital Outperform → Market Perform

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.03. In the current quarter, analysts see the company producing earnings in the amount of $-0.02. Over the last 5 years, SREV has generated revenue in the amount of $-2.60% with earnings coming in at 1.60%. On a quarter over quarter basis, earnings have seen movement of 34.50% and revenue has seen movement of -6.60%.

What’s Going On With Share Counts?

Traders and investors tend to have a heavy interest in the amounts of shares both outstanding and available. As far as ServiceSource International, Inc., currently there are 91.56M with a float of 91.23M. These data mean that out of the total of 91.56M shares of SREV currently in existence today, 91.23M are available to trade hands in the public realm.

It’s also important to dig into the short percentage of the float. Think about it, if a high portion of the float is shorted, the overall opinion in the market is that the equity is going to fall. As far as SREV, the percentage of the float that is shorted currently sits at 0.53%. Most investors would say that a concerning short percent of the float is anything over 40%. Through my work, I have calculated that anything over 26% is probably going to be a a play that could prove to be very risky.

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