About 18.0% of Smith Micro outstanding shares are owned by corporate
insiders. Insiders ownership of Smith Micro Software refers to the amount of Smith Micro Software equity owned by Smith officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Smith, including its current
ownership diagnostics.
The performance of Smith Micro Software in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Smith Micro's
stock prices. When investing in Smith Micro, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Smith Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Smith Micro carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Smith Micro's Liquidity
Smith Micro
financial leverage refers to using borrowed capital as a funding source to finance Smith Micro Software ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Smith Micro 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. Financial leverage can amplify the potential profits to Smith Micro's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Smith Micro's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Smith Micro's total debt and its cash.
Smith Micro Gross Profit
Smith Micro Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Smith Micro previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Smith Micro Gross Profit growth over the last 10 years. Please check Smith Micro's
gross profit and other
fundamental indicators for more details.
Another Deeper Perspective
Smith Micro maintains a total of 41.3 Million outstanding shares. Smith Micro Software has significant amount of outstanding shares owned by
insiders and
institutional investors .Since such a large part of the company is not owned by regular investors, we recommend to check if there were significant buying or selling the Smith Micro Software stock in recent months. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| 2020 | 2021 (projected) |
Revenues USD | 35.56 M | 42.2 M | Revenues | 49.85 M | 53.54 M |
Ownership Breakdown
| Retail Investors57.76% | Insiders18.26% | Institutions23.98% |
| Retail Investors | 57.76 |
| Insiders | 18.26 |
| Institutions | 23.98 |
Will Smith stockholders exit after the drop?
Semi variance is down to 5.78. It may hint to a possible volatility drop. Smith Micro Software currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.25. However, we advise investors to further question Smith Micro Software expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Smith Micro's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Smith Micro's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Take On Smith Micro
While some firms in the software—application industry are either recovering or due for a correction, Smith may not be as strong as the others in terms of longer-term growth potentials. While some stockholders may not share our view, we believe it may be a good time to increase your existing holdings in Smith. 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 Smith Micro.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Smith Micro Software. Please refer to our
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