The Smith Micro Software Inc. (SMSI) shares are trading at higher $4.65 and the avg recommendation for the stock is Moderate Buy.
To add more color to this target, the company’s high over the last year is $7.15 and the low is $2.82. Over the last 52 weeks, SMSI is down -34.97% while the S&P 500 is down -2.55%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SMSI reported a profit of $12.15 million. Smith Micro Software Inc. also saw revenues increase to $13.32 million. In addition, SMSI has free cash flow of $1.49 million as of 03-2020 The company’s EBITDA came in at $2.6 million which compares well with its peers.
SMSI booked profit margins of 26.20%, and its Return on Assets is 22.20%. All told, it is clear that, SMSI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SMSI has a short ratio of 2.47 and outstanding shares of 39.48M.
SMSI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.5 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.32. Smith Micro Software Inc. SMSI also noted assets of $68.35 million at the end of the last quarter. Investors should also keep an eye on sector updates as SMSI has historically followed its peers on positive news.
All told, Smith Micro Software Inc. SMSI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SMSI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Smith Micro Software Inc. SMSI is now commanding a market cap of 192.65M and a float of 33.30M. SMSI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SMSI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SMSI, either long or short, and we have not been compensated for this article.