As volatility creeps into Otelco Inc. (NASDAQ:OTEL), investors need to pay close attention to to the factors affecting stock today as its shares are trading 23.99% or 3.63 points down from last closing price of $15.13, reaching $11.5 at last check. The OTEL share price has dropped in 2 of the last 5 days and is down -4.71% 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 63,777 shares, and in total 66177 shares valued at $761036 were seen changing hands compared with 2400 shares valued at $36312 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 OTEL stock.
Otelco Inc. (OTEL) shares have notched a 3-month decline of about -4.71%, but has still tumbled -7.48% year to date. By comparison, the stock added 1.43% over the past 12 months, while it jumped 0.74% over the 1 month. The company’s market cap is around $51.02M, with its short interest ratio standing at 0.08%.
In the current trading session for OTEL, the stock witnessed two major price actions, it rose to a high of $13.9 and was down as much as $11 at one point. The high recorded is very low when compared to their 52-week high which is $14.37. The 52-week high is now at -39.39 distance from current price. Their recent low of $18.31 represents a -22.76% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Otelco Inc. earned $2.84 per share in the trailing 12 months and has a P/E ratio of 4.05. 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 22.08 and lower compared to the sector’s average of 21.11. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. OTEL also has P/S multiple of 0.6. 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 3.26x.
The company recorded an interesting insider purchase transaction by the Major Shareholder on Jul 29, 2019. A Securities and Exchanges Commission filings show that Ira Sochet bought a total of 1,719 OTEL shares that day for a sum of around $25,321. Otelco Inc. (OTEL) insiders have acquired 141,326 shares in the stock within the past three months. In total, individual insiders traded 141,326 shares in the business, which makes up 28.568% of 494,708 shares that were traded over a year. In the past 12 months, insiders have purchased 486,476 shares while the seller parted with 8,232 shares.
OTEL‘s last price was down -31.22% as compared to the average trading price of 50 days recorded at $16.72 while enlarging the period to 200 trading days, the average closing price was $15.78. At present, there are 3.41 million in the total number of common shares owned by the public and among those 1.75 million shares have been available to trade. The percentage of shares being held by the company management was 3.8% while institutions stake was 10.9%. The company has generated positive returns on equity over the last 12 months (100.7%). It managed to keep its gross profit margin at 53.6% over the past 12 months.
When assessing the full upside of the OTEL stock, there is another set of technicals that should be looked into and considered. Its -25% decline from moving average of $15.33 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 0.7 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 -40.6%. Though the percentage looks disappointing, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by 0%. The revenue of the company has retreated at an average annualized rate of about -3.5 over the last five years. The company recently recorded a drop of -5.4%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards OTEL stock. BlackRock Inc. added position in the company after it grew 13% or 8,034 shares of its common stock. The hedge fund now owns 9,078 shares worth $104,397, SEC documents show. Acadian Asset Management LLC shored up assets in the stock as 15042.82 shares have been purchased, increasing its stake by 5.1% to 15,810 shares which are currently valued at $181,815. In addition, Wedbush Securities Inc. recently reported that it now owns 123,536 shares making a total of $1,420,664 based on the recent price. This refelects a change of -1.1% in their ownership.