Houghton Story

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HMHC -- USA Stock  

USD 2.89  0.18  5.86%

Houghton Mifflin Revenue Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 409,022. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 120.7 M, whereas Net Income Per Employee is forecasted to decline to (67.9 K). While many traders today are more concerned about the preservation of capital over market returns, Houghton Mifflin Harcourt could be one exception. We will evaluate why we are still optimistic in anticipation of a recovery. This post is to show some fundamental factors affecting Houghton Mifflin's products and services. I will also drop some light on how it may impact the investing outlook for Houghton Mifflin in November.
Published over two weeks ago
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Houghton Mifflin (NASDAQ:HMHC) continues to rise
Over 99.0% of Houghton Mifflin shares are owned by institutional investors. Institutional ownership of Houghton Mifflin Har refers to the amount of Houghton Mifflin Har equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Houghton, including its current ownership diagnostics.

How important is Houghton Mifflin's Liquidity

Houghton Mifflin financial leverage refers to using borrowed capital as a funding source to finance Houghton Mifflin Harcourt ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Houghton Mifflin financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Houghton Mifflin's total debt and its cash.

How Houghton utilizes its cash?

To perform a cash flow analysis of Houghton Mifflin, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Houghton Mifflin is receiving and how much cash it distributes out in a given period. The Houghton Mifflin cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Houghton Mifflin Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 254.97 Million

Sale by John Dragoon of 50000 shares of Houghton Mifflin

Legal trades by Houghton Mifflin insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Houghton Mifflin Harcourt insider trading alert for sale of common stock by John Dragoon, the corporate stakeholder, on 11th of June 2020. This event was filed by Houghton Mifflin Harcourt with SEC on 2015-03-18. Statement of changes in beneficial ownership - SEC Form 4. John Dragoon is currently serves as executive vice president chief marketing officer of Houghton Mifflin Har [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is the case for Houghton Mifflin Investors

Houghton Mifflin secures a total of 125.83 Million outstanding shares. The majority of Houghton Mifflin Har outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Houghton Mifflin to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Houghton Mifflin Harcourt. Please pay attention to any change in the institutional holdings of Houghton Mifflin Har as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Ownership Breakdown

Institutions
99.12%
Retail Investors0.17
Insiders0.71
Institutions99.12

Our take on today Houghton Mifflin rise

Standard deviation is down to 8.2. It may suggest a possible volatility slip. Houghton Mifflin Harcourt is displaying above-average volatility over the selected time horizon. Investors should scrutinize Houghton Mifflin Harcourt independently to ensure intended market timing strategies are aligned with expectations about Houghton Mifflin volatility.

Whereas some companies under the education & training services industry are still a bit expensive, Houghton Mifflin may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Houghton Mifflin holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Houghton Mifflin.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Houghton Mifflin Harcourt. Please refer to our Terms of Use for any information regarding our disclosure principles.

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