Vuzix Corporation (VUZI) Stock: Here’s Why It’s Headed For The Bottom – iWatch Markets

Vuzix Corporation (VUZI) is making a move down in the market today. The company, focused on the technology industry, is presently priced at $2.57 after tumbling -7.22% so far in today’s session. In terms of technology companies, there are several aspects that have the ability to lead to price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines surrounding VUZI:

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However, any time investors are making an investing decision, prospective investors should take a look at far more than just news, especially in the ever changing technology space. Here’s what’s happing when it comes to Vuzix Corporation.

Recent Movement From VUZI

While a move toward the top in a single session, like the move that we’re seeing from Vuzix Corporation might lead to fear in some investors, a single session fall by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It is generally smart to dig into trends experienced by the stock further out than a single trading session. In the case of VUZI, below are the trends that investors have experienced:

  • Weekly – Over the last week, VUZI has seen a change in value amounting to -3.02%.
  • Past 30 Days – The monthly returns from Vuzix Corporation comes to -6.20%.
  • Past Three Months – Throughout the past 3 months, the company has produced a ROI that works out to -35.75%
  • Past 6 Months – Throughout the previous 6 months, we’ve seen a change of -56.07% from the company.
  • YTD – Since the the first trading session of this year VUZI has resulted in a ROI of -46.57%.
  • Full Year – Finally, throughout the past year, we’ve seen movement that works out to -54.11% out of VUZI. In this period of time, the stock has traded at a high of -69.59% and a low price of 11.26%.

Notable Ratios

Digging into a few key ratios associated with a stock generally gives prospective traders a view of just how risky and/or potentially profitable a pick might be. Below are some of the important ratios to consider when digging into VUZI.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the price of the stock is going to fall. In general, strong tech stocks tend to have a lower short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, as it relates to Vuzix Corporation, it’s short ratio clocks in at 16.32.

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 as they mature based on quick assets or current assets. In the technology industry, many companies rely heavily on continued investor support as they work to bring new technologies to market, the quick and current ratios can be upsetting. However, quite a few better companies in the tech industry do have great current and quick ratios. As far as VUZI, the quick and current ratios total up to 4.30 and 5.90 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets that are owned by the company. In the case of Vuzix Corporation, the book to share value ratio works out to 1.10.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the price of the company’s stock. In this case, the cash to share value ratio is 0.63.

Is Big Money Interested in Vuzix Corporation?

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in VUZI, here’s what we’re seeing:

Institutions own 29.50% of the company. Institutional interest has moved by 0.32% over the past three months. When it comes to insiders, those who are close to the company currently own 6.70% percent of VUZI shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

How Analysts Feel About Vuzix Corporation

Although it’s never a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to use their opinions when validating your own due diligence when it comes to making investment decisions in the technology industry. Here are the most recent moves that we’ve seen from analysts as it relates to VUZI.

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Oct-28-16InitiatedMaxim GroupBuy$11
Dec-14-15ReiteratedChardan Capital MarketsBuy$7 → $10
Dec-10-15InitiatedRodman & RenshawBuy$10
Sep-28-15ResumedChardan Capital MarketsBuy$7
Aug-17-15ReiteratedChardan Capital MarketsBuy$10 → $7

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.40. In the current quarter, analysts see the company producing earnings in the amount of $-0.17. Over the last 5 years, VUZI has generated revenue in the amount of $27.60% with earnings coming in at 12.40%. On a quarter over quarter basis, earnings have seen movement of 22.10% and revenue has seen movement of 25.00%.

Looking At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 27.40M shares of Vuzix Corporation outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, VUZI has a float of 23.59M.

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 VUZI, the short percent of the float is 24.12%.

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