Smith Micro Software, Inc. (NASDAQ:SMSI) was one of the hottest stocks as the company shares were 4.64% or 0.15 points lower from last closing price of $3.23, reaching at $3.08. Any clue why there is so much of action in the SMSI stock? The share price has dropped in 3 of the last 5 days and is up 62.96% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 40,400 shares, and in total 207800 shares valued at $640024 were seen changing hands compared with 167400 shares valued at $540702 recorded at the previous session. You should take into consideration that a greater volume on lower prices causes the situation where nobody wants to continue with their long position and wants to exit from the SMSI stock.
Smith Micro Software, Inc. (SMSI) shares have notched a 3-month gain of about 62.96%, but has still advanced 71.11% year to date. By comparison, the stock added 72.07% over the past 12 months, while it jumped 29.41% over the 1 month. The company’s market cap is around $95.36M, with its short interest ratio standing at 8.64%.
In the current trading session for SMSI, the stock witnessed two major price actions, it rose to a high of $3.23 and was down as much as $3.05 at one point. The high recorded is very low when compared to their 52-week high which is $1.62. The 52-week high is now at -8.06 distance from current price. Their recent low of $3.35 represents a 90.12% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for SMSI is $4.1, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Smith Micro Software, Inc. earned $-0.21 per share in the trailing 12 months and has a P/E ratio of -14.67. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 32.6 and lower compared to the sector’s average of 1194.64. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. SMSI also has P/S multiple of 3.63. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 5.19x.
The company recorded an interesting insider purchase transaction by the CFO on Nov 04, 2015. A Securities and Exchanges Commission filings show that Steven Yasbek bought a total of 40,000 SMSI shares that day for a sum of around $34,000. The filings show that the insider stake has now grown to 350,487 shares, currently worth $1,079,500. Smith Micro Software, Inc. (SMSI) insiders have acquired 500,000 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 54,876 shares. In total, individual insiders traded 554,876 shares in the business, which makes up 13.045% of 4,253,619 shares that were traded over a year. In the past 12 months, insiders have purchased 4,172,808 shares while the seller parted with 80,811 shares.
SMSI‘s last price was up 33.74% as compared to the average trading price of 50 days recorded at $2.3 while enlarging the period to 200 trading days, the average closing price was $2.32. At present, there are 30.96 million in the total number of common shares owned by the public and among those 20.49 million shares have been available to trade. The percentage of shares being held by the company management was 15.7% while institutions stake was 9.4%. The company has generated negative returns on equity over the last 12 months (-40%). It managed to keep its gross profit margin at 83.5% over the past 12 months.
When assessing the full upside of the SMSI stock, there is another set of technicals that should be looked into and considered. Its 5.71% gain from moving average of $2.91 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0.35 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of Smith Micro Software, Inc. — 2 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $4.5 on shares of Smith Micro Software, Inc. (NASDAQ:SMSI), which corresponds to 46.10% upside potential than its current market price of $3.08 and implies potential despite the recent drop in the price. However, their current target price has climbed from $4 a month ago and is up handily from the consensus target of $4 a quarter ago.
In the last five years, the EPS of the company has been roughly 45.8%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 10.75%. The revenue of the company has retreated at an average annualized rate of about -9.2 over the last five years. The company recently recorded an increase of 29.8%, but this figure is rather attractive.
Let’s briefly check the hedge fund interest towards SMSI stock. Northern Trust Corp added position in the company after it grew 26.1% or 25,732 shares of its common stock. The hedge fund now owns 32,448 shares worth $99,940, SEC documents show. BlackRock Inc. shored up assets in the stock as 354066.4 shares have been purchased, increasing its stake by 4% to 368,229 shares which are currently valued at $1,134,145. In addition, Acadian Asset Management LLC recently reported that it now owns 60,123 shares making a total of $185,179 based on the recent price. This refelects a change of 50% in their ownership.