Smith Micro Software, Inc. (SMSI) Stock: A Good Pick In The technology Industry?

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Smith Micro Software, Inc. (SMSI) is trending up in the market in today’s trading session. The stock, focused in the tech industry, is currently trading at $5.14 after climbing 5.33% so far in today’s session. As it relates to technology companies, there are a number of aspects that have the ability to lead to price movement in the market. One of the most common is news. Here are the recent headlines centered around SMSI:

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Nov-13-19 10:00AM Boost Mobile Prepaid Customers Can Now Locate Valuables With Tracker + Safe & Found
Oct-29-19 03:02PM Edited Transcript of SMSI earnings conference call or presentation 24-Oct-19 8:30pm GMT
Oct-24-19 04:05PM Smith Micro Reports Third Quarter 2019 Financial Results
Oct-17-19 08:00AM Smith Micro Schedules Teleconference to Discuss Third Quarter 2019 Financial Results
Oct-09-19 12:03PM Is Smith Micro Software’s (NASDAQ:SMSI) 154% Share Price Increase Well Justified?

However, when making a decision to invest, prospective investors should focus on far more than just news, this is especially the case in the ever changing technology space. Here’s what’s going on with Smith Micro Software, Inc..

Returns That SMSI Investors Have Seen

Although a gain in a single session, like the move that we’re seeing from Smith Micro Software, Inc. might make some investors jump for joy, a single session move alone should not be the basis of a decision to, or not to, buy a company’s stock. It’s always smart to dig into trends experienced by the stock just a single trading day. In the case of SMSI, here are the returns on investment that investors have experienced:

  • Past 7 Days – Over the past five trading sessions, SMSI has seen a change in value that amounts to 9.13%.
  • Past 30 Days – The monthly returns from Smith Micro Software, Inc. has been -14.62%.
  • Past Quarter – Throughout the past 3 months, the company has produced a ROI that comes to -14.05%
  • Past 6 Months – Throughout the last 6 months, investors have seen a performance that equates to 53.89% from the stock.
  • Year To Date – Since the the first trading session of this year SMSI has resulted in a ROI of 185.56%.
  • Annually – Finally, throughout the past full year, investors have seen movement that works out to 149.51% out of SMSI. Throughout this period, the stock has sold at a high of -25.51% and a low of 217.28%.

Ratios Worth Paying Attention To

Digging into a few ratios associated with a stock generally gives traders a look of how dangerous and/or potentially profitable a an investment option may be. Below are some of the most important ratios to consider when looking at SMSI.

Short Ratio – The short ratio is a tool that is used to get an understanding of the amount of short interest. As the short ratio heads up, it shows that more investors believe that the value of the stock is going to go down. Throughout the sector, strong technology stocks tend to come with a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the industry. Nonetheless, as it relates to Smith Micro Software, Inc., the stock’s short ratio comes to 2.58.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Essentially, they measure whether or not a company can pay its debts as they mature with only current assets or quick assets. In the tech sector, several companies are heavily reliant on continued investor support as they work to bring new technologies to market, the quick and current ratios can look damning. However, several good picks in the technology sector do have good quick and current ratios. When it comes to SMSI, the quick and current ratios total up to 7.00 and 7.00 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 Smith Micro Software, Inc., that ratio is 1.24.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value works out to 0.62.

Smart Money Follows Big Money

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 SMSI, here’s what we’re seeing:

Institutions own 9.00% of the company. Institutional interest has moved by 1.32% over the past three months. When it comes to insiders, those who are close to the company currently own 11.80% percent of SMSI shares. Institutions have seen ownership changes of an accumulative -1.46% over the last three months.

Analyst Opinions With Regard To Smith Micro Software, Inc.

While it’s never a smart idea to avoid doing your DD and blindly following the thoughts of analysts, it is a good idea to consider their analysis when validating your own before making investment decisions in the tech industry. Here are the most recent moves that we’ve seen from analysts as it relates to SMSI.

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Jul-19-19 Initiated B. Riley FBR Buy $5
Oct-19-15 Downgrade Needham Buy → Hold
Feb-25-15 Upgrade Needham Hold → Buy $2.10
Jan-07-15 Upgrade H.C. Wainwright Neutral → Buy $2
Jul-18-14 Initiated H.C. Wainwright Neutral

Earnings

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

  • Analyst Expectations – Currently, analysts are expecting that Smith Micro Software, Inc. will report earnings per diluted share in the amount of 0.30, with 0.07 being announced in the next financial report. Although this data is not associated with earnings, because we are chatting on the topic of Wall St. analysts, SMSI is presently graded as a 2.00 considering a scale that ranges from 1 to 5 on which 1 is the worst possible analyst rating and 5 is the best rating.
  • 5-Year Sales – Over the past half decade, Smith Micro Software, Inc. has reported a change in sales that comes to a total of -9.20%. Earnings in the past half decade have experienced a change of 45.80%.
  • Q/Q – when it comes to quarter over quarter earnings performance, or Q/Q data as it is generally explained in the human world, the company has generated a change in earnings that comes to a total of 317.10%. Smith Micro Software, Inc. has also experienced movement with regard to sales volume that amounts to 81.50%.

How Many Shares Of SMSI Are Available?

Investors seem to be interested in the total numbers of shares both outstanding and available. With respect to Smith Micro Software, Inc., currently there are 38.33M with a float of 30.35M. These data mean that out of the total of 38.33M shares of SMSI in existence today, 30.35M are available to trade hands on the market.

It’s also important to look at the short percentage of the float. Think about it, when a high percentage of the float available for trading is sold short, the overall feeling among investors is that the company is headed for a deep dive. In regard to SMSI, the short percentage of the float totals up to 5.38%. Most investors would say that a concerning short percent of the float would be considered to be anything over 40%. However, I have found that any short percent of the float over 26% is likely a play that comes with hefty risk.

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