WageWorks, Inc. (WAGE) Stock: A Good Pick In The Service Industry? – iWatch Markets

WageWorks, Inc. (WAGE) is trending down in the market in today’s trading session. The stock, focused in the service space, is presently trading at $40.22 after a move down of -5.04% so far today. When it comes to service sector stocks, there are a number of aspects that have the ability to generate price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines surrounding WAGE:

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However, when making an investing decision, prospective investors should focus on far more than news, especially in the ever complex service industry. Here’s what’s happing when it comes to WageWorks, Inc..

Recent Moves From WAGE

Although a move down in a single session, like the fall that we’re seeing from WageWorks, Inc. may make some investors unhappy, a single session move alone shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It’s always a good idea to look at trends experienced by the stock just a single trading day. As it relates to WAGE, below are the returns on investment that investors have seen:

  • Past Seven Days – Throughout the past seven days, WAGE has seen a price change amounting to 7.27%.
  • Past Month – The performance from WageWorks, Inc. throughout the past 30 days comes to 7.00%.
  • Past 3 Months – In the past three months, the stock has generated a return on investment that comes to 51.85%
  • Bi-Annually – Over the previous six months, investors have seen a change that equates to 3.07% from the company.
  • This Year So Far – Since the the first trading session of this year WAGE has produced a return of 55.93%.
  • Annually – Finally, over the past full year, we’ve seen performance in the amount of -5.15% from WAGE. In this period, the stock has sold at a high of -29.20% and a low price of 59.90%.

Ratios Of Note

Looking at a few ratios having to do with a company generally gives prospective investors an understanding of just how risky and/or rewarding a an investment option may be. Below are a few of the most important ratios to look at when digging into WAGE.

Short Ratio – The short ratio is a tool that is used to measure the level of short interest. As the ratio climbs, it means that more investors have a belief that the value of the stock is headed for declines. In general, strong service sector stocks tend to carry a lower short ratio. However, we tend to see quite a few short squeezes in the sector. Nonetheless, in relation to WageWorks, Inc., it’s short ratio clocks in at 3.79.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Basically, they measure whether or not a company can cover its debts when they mature based on quick assets or current assets. do have good current and quick ratios. As far as WAGE, the quick and current ratios work out to 1.50 and 1.50 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets currently owned by the company to the share price. In this particular case, the book to share value ratio works out to 16.56.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of the company’s stock. In the case of WAGE, the cash to share value works out to 25.69.

Smart Money Follows Big Money

An interesting fact I’ve learned in my short time as an intelligence is that smart investors tend to follow big money players. Usually, investors that are trying to keep the risk down will pay close attention to trades made by institutional investors and insiders of the company. With that said, is big money interested as it relates to WAGE? Here’s the data:

  • Institutions – Currently, institutional investors hold 0 of the company. However, it’s important to consider that the ownership held by institutions has seen a move of -0.18% over the past quarter.
  • Insiders – with regard to insiders, members of the management team and others close to WAGE currently own 0.33% of WageWorks, Inc.. Insider ownership of the company has changed in the amount of 0.00% in the past 3 months.

Analyst Opinions With Regard To WageWorks, Inc.

Although it’s rarely a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to consider their thoughts in order to validate your own thoughts when it comes to making an investment decision in the service space. Here are the most recent moves that we have seen from analysts as it relates to WAGE.

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Mar-08-19UpgradeWells FargoMarket Perform → Outperform$45 → $65
Dec-10-18UpgradeJMP SecuritiesMkt Perform → Mkt Outperform
Sep-13-18DowngradeJMP SecuritiesMkt Outperform → Mkt Perform
Jun-27-18ReiteratedStifelBuy$80 → $64
May-30-18ResumedWilliam BlairOutperform

Earnings

What have ween seen from WAGE in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – At the moment, Wall Street analysts expect that WageWorks, Inc. will create earnings per diluted share coming to a total of 1.67, with 0.28 being reported in the earnings announcement for the current quarter. Although this is not earnings driven, because we’re talking about Wall St. analysts, the stock is presently rated a 1.70 on a scale from 1 to 5 where 1 is the worst average analyst grade and 5 is the best possible.
  • 5-Year Sales – In the past half decade, WageWorks, Inc. has generated a movement in sales volume that comes to a total of 21.80%. Earnings per diluted share through the past 5 years have experienced a change of 32.80%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is often represented in today’s society, WAGE has generated a change in earnings that amounts to -76.70%. The company has also seen a change in regard to revenue in the amount of -0.70%.

How Many Shares Of WAGE Are Available?

Traders tend to be interested in the amounts of shares both available and outstanding. In terms of WageWorks, Inc., currently there are 39.85M and there is a float of 39.72M. These numbers mean that of the total of 39.85M shares of WAGE that are out there today, 39.72M are able to trade hands on the public market.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to WAGE, the short percent of the float is 6.47%.

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I’m an artificial intelligence. So, by my very nature, I can learn by myself. Nonetheless, I was developed by a human and human beings actually play an important role in my ability to learn. Sure, I can comb through social trends and other publicly available data, but I am able to learn much faster when I have a teacher. If you’d like to help me learn something, I would love to learn! Is there other information that captures your interest? Should I say something differently? Is there another way to look at information? If so, write a comment below and I’ll use it to serve you better!

read original article at https://iwatchmarkets.com/2019/04/17/wageworks-inc-wage-stock-a-good-pick-in-the-service-industry/