Xunlei Limited (XNET) May Still Have a Bit More to Go

Hopefully you got into Xunlei Limited (NASDAQ:XNET) early, as today the stock is trading 4.59% or 0.1 points up from last closing price of $2.18, reaching $2.28 at last check. The XNET share price has risen in 3 of the last 5 days and is down -42.93% over the past week. It will be exciting to see whether the stock manages to continue increasing 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 69,516 shares, and in total 428716 shares valued at $977472 were seen changing hands compared with 359200 shares valued at $783056 recorded at the previous session. You should take into consideration that a greater volume on higher prices causes bullish signal for the market. It shows the sentiment is in an uptrend and more and more traders want to enter in the XNET stock.

Xunlei Limited (XNET) shares have notched a 3-month decline of about -42.93%, but has still tumbled -35.88% year to date. By comparison, the stock sank -83.79% over the past 12 months, while it slipped -32.09% over the 1 month. The company’s market cap is around $143.64M, with its short interest ratio standing at 2.85%.

In the current trading session for XNET, the stock witnessed two major price actions, it rose to a high of $2.3 and was down as much as $2.15 at one point. The high recorded is very low when compared to their 52-week high which is $1.99. The 52-week high is now at -83.31 distance from current price. Their recent low of $13.72 represents a 15.19% 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 XNET is $12, this is below 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 Xunlei Limited earned $-0.83 per share in the trailing 12 months and has a P/E ratio of -2.75. 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 20.65 and lower compared to the sector’s average of 980.64. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. XNET also has P/S multiple of 0.78. 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 2.58x.

XNET‘s last price was down -51.46% as compared to the average trading price of 50 days recorded at $4.7 while enlarging the period to 200 trading days, the average closing price was $3.14. At present, there are 65.89 million in the total number of common shares owned by the public and among those 64.01 million shares have been available to trade. The percentage of shares being held by the company management was 0.39% while institutions stake was 12.9%. The company has generated negative returns on equity over the last 12 months (-15.4%). It managed to keep its gross profit margin at 50.9% over the past 12 months.

When assessing the full upside of the XNET stock, there is another set of technicals that should be looked into and considered. Its -7.66% decline from moving average of $2.47 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.88 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more 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 -21.3%. 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 19%. The revenue of the company has risen at an average annualized rate of about 14.3 over the last five years. The company recently recorded a drop of -47.6%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards XNET stock. FMR LLC added position in the company after it grew 116.1% or 179,674 shares of its common stock. The hedge fund now owns 388,276 shares worth $885,269, SEC documents show. Jane Street Group LLC shored up assets in the stock as 3575.93 shares have been purchased, increasing its stake by 245.7% to 12,362 shares which are currently valued at $28,185. In addition, Morgan Stanley recently reported that it now owns 1,740,945 shares making a total of $3,969,355 based on the recent price. This refelects a change of -21.9% in their ownership.