Performant Financial Corporation (PFMT) Posting Big Drops On Saturday, What Lies Ahead?

As volatility creeps into Performant Financial Corporation (NASDAQ:PFMT), investors need to pay close attention to to the factors affecting stock today as its shares are trading 18.25% or 0.25 points down from last closing price of $1.37, reaching $1.12 at last check. The PFMT share price has dropped in 4 of the last 5 days and is down -28.65% 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 2,398,904 shares, and in total 2.425 million shares valued at $2.716 million were seen changing hands compared with 26200 shares valued at $35894 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 PFMT stock.

Performant Financial Corporation (PFMT) shares have notched a 3-month decline of about -28.65%, but has still tumbled -39.11% year to date. By comparison, the stock sank -37.44% over the past 12 months, while it slipped -15.95% over the 1 month. The company’s market cap is around $70.84M, with its short interest ratio standing at 6%.

In the current trading session for PFMT, the stock witnessed two major price actions, it rose to a high of $1.36 and was down as much as $1.1 at one point. The high recorded is very low when compared to their 52-week high which is $1.14. The 52-week high is now at -60.2 distance from current price. Their recent low of $2.86 represents a 0% 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 PFMT is $3, 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 Performant Financial Corporation earned $-0.47 per share in the trailing 12 months and has a P/E ratio of -2.38. 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 20.16 and lower compared to the sector’s average of 24.02. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. PFMT also has P/S multiple of 0.43. 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 1115.33x.

The company recorded an interesting insider sale transaction by the VP on Feb 15, 2019. A Securities and Exchanges Commission filings show that Simeon Kohl sold a total of 4,365 PFMT shares that day for a sum of around $9,603. The filings show that the insider now retains 30,337 shares, currently worth $33,977. Performant Financial Corporation (PFMT) insiders have acquired no shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 27,729 shares. In total, individual insiders traded 27,729 shares in the business, which makes up 33.015% of 83,988 shares that were traded over a year. In the past 12 months, insiders have purchased zero shares while the seller parted with 83,988 shares.

PFMT‘s last price was down -39.47% as compared to the average trading price of 50 days recorded at $1.85 while enlarging the period to 200 trading days, the average closing price was $1.77. At present, there are 51.71 million in the total number of common shares owned by the public and among those 32.32 million shares have been available to trade. The percentage of shares being held by the company management was 1.1% while institutions stake was 58.6%. The company has generated negative returns on equity over the last 12 months (-31.7%). It managed to keep its gross profit margin at 0% over the past 12 months.

When assessing the full upside of the PFMT stock, there is another set of technicals that should be looked into and considered. Its -23.97% decline from moving average of $1.47 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 0.47 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.

In the last five years, the EPS of the company has been roughly -17.2%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 20%. The revenue of the company has retreated at an average annualized rate of about -9.4 over the last five years. The company recently recorded a drop of -38.8%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards PFMT stock. BlueCrest Capital Management Ltd added position in the company after it grew 50% or 53,572 shares of its common stock. The hedge fund now owns 80,358 shares worth $90,001, SEC documents show. RMB Capital Management LLC cut assets in the stock as 1048412 shares have been sold, reducing its stake by -5.8% to 987,604 shares which are currently valued at $1,106,116. In addition, Renaissance Technologies LLC recently reported that it now owns 933,939 shares making a total of $1,046,012 based on the recent price. This refelects a change of 0.7% in their ownership.