Smith Micro Software, Inc. (NASDAQ:SMSI) could be among the best stocks to invest in right now as the company shares are trading 4.02% or 0.13 points up from last closing price of $3.23, reaching $3.36 at last check. Any clue why there is so much of action in the SMSI stock? The share price has risen in 4 of the last 5 days and is up 12.54% 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 64,058 shares, and in total 423358 shares valued at $1.422 million were seen changing hands compared with 359300 shares valued at $1.161 million 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 SMSI stock.
Smith Micro Software, Inc. (SMSI) shares have notched a 3-month gain of about 12.54%, but has still advanced 79.44% year to date. By comparison, the stock added 31.84% over the past 12 months, while it jumped 3.86% over the 1 month. The company’s market cap is around $99.39M, with its short interest ratio standing at 21.65%.
In the current trading session for SMSI, the stock witnessed two major price actions, it rose to a high of $3.4 and was down as much as $3.25 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 -3.52 distance from current price. Their recent low of $3.48 represents a 107.25% 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 $5, 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 $-0.05 per share in the trailing 12 months and has a P/E ratio of -67.2. 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 125.54 and lower compared to the sector’s average of 13.91. 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 3.53. 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 8.14x.
The company recorded an interesting insider sale transaction by the Director on May 13, 2019. A Securities and Exchanges Commission filings show that Thomas G Campbell sold a total of 5,000 SMSI shares that day for a sum of around $16,000. The filings show that the insider now retains 57,000 shares, currently worth $191,520. Smith Micro Software, Inc. (SMSI) 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 16,748 shares. In total, individual insiders traded 16,748 shares in the business, which makes up 2.844% of 588,880 shares that were traded over a year. In the past 12 months, insiders have purchased 500,000 shares while the seller parted with 88,880 shares.
SMSI‘s last price was up 34.68% as compared to the average trading price of 50 days recorded at $2.49 while enlarging the period to 200 trading days, the average closing price was $3.07. At present, there are 30.77 million in the total number of common shares owned by the public and among those 21.55 million shares have been available to trade. The percentage of shares being held by the company management was 15.7% while institutions stake was 9.7%. The company has generated negative returns on equity over the last 12 months (-5.6%). It managed to keep its gross profit margin at 86.5% 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 8.28% gain from moving average of $3.1 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0.36 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. — 3 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 $4.6667 on shares of Smith Micro Software, Inc. (NASDAQ:SMSI), which corresponds to 38.89% upside potential than its current market price of $3.36 and implies potential despite the recent advance in the price. However, their current target price has climbed from $4.5 a month ago and is up handily from the consensus target of $4.5 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 52.7%, but this figure is rather attractive.
Let’s briefly check the hedge fund interest towards SMSI stock. Acadian Asset Management LLC added position in the company after it grew 75.8% or 60,133 shares of its common stock. The hedge fund now owns 105,713 shares worth $355,196, SEC documents show. Cowen Prime Services LLC cut assets in the stock as 42155.99 shares have been sold, reducing its stake by -28.2% to 30,268 shares which are currently valued at $101,701. In addition, Cowen Prime Services LLC recently reported that it now owns 85 shares making a total of $286 based on the recent price. This refelects a change of -99.8% in their ownership.