(VIANEWS) – Ebix (NASDAQ: EBIX) shares dropped 14.07% at 21:32 EST on Wednesday after two consecutive sessions of losses, even as the NASDAQ dropped only 0.47% overall to EUR13,575.222 after five straight gains – suggesting a downtrend in trading for that day.
Ebix closed at EUR5.65, 82.81% below its 52-week high of EUR32.87.
About Ebix
Ebix Inc provides on-demand software exchanges and e-commerce solutions to the insurance, financial services, travel, cash remittance and healthcare industries worldwide. SaaS enterprise solutions offered by this provider include customer relationship management, front-end and back-end systems integration services, as well as administrative and risk compliance outsource solutions. EbixCash provides an assortment of products and services, including gift cards, travel exchanges, money transfer services, foreign exchange capabilities and consumer payment services, lending technology as well as wealth and asset management software solutions. Ebix provides insurance exchange services via SaaS platforms, software licenses and professional services including setup, customization, training or consulting. Ebix also provides risk compliance services including certificate creation/tracking as well as consulting/outsourcing/BPO. Established in 1976 and located in Johns Creek Georgia.
Yearly Analysis
According to available data, Ebix stock is currently trading at EUR4.86 per share – below its 52-week low of EUR5.12 and therefore indicates a bearish trend for 2019.
Ebix anticipates its sales growth for this year at negative 41.5%; however, projections indicate a negative 11.4% decrease next year indicating it could begin recovering from its current downturn.
Ebix currently boasts an EBITDA of EUR42.8, indicating it is profitable; however, negative sales growth could compromise Ebix’s ability to sustain such profitability in future.
Overall, investors should approach Ebix stock with caution given its current position below its 52-week low and poor sales growth projections. Nonetheless, its profitability, as indicated by its positive EBITDA level could provide investors with some hope; it is recommended to conduct further research before making investment decisions.
Technical Analysis
Ebix, an international provider of on-demand software and e-commerce services to the insurance, financial, and e-learning industries, has seen its stock prices plummet below both its 50-day and 200-day moving averages; currently at EUR10.08 and EUR17.00 respectively. This indicates a downward trend which is further supported by lower trading volume (749,670 which represents 39.45% lower trading volume than usual of 1,238,190).
As for volatility, Ebix experienced a positive 4.26% change over the past week, negative 0.98% over the last month and positive 5.76% change over the past quarter. Ebix’s highest average volatility occurred over its recent week at 6.60%; its last month’s volatility stood at 5.10 % while it’s quarterly volatility stood at 5.76%.
The stochastic oscillator, a tool to analyze overbought and oversold conditions, has classified Ebix’s stock as overbought (>=80) given its current position. This may signal that there may be an imminent decrease in price.
Ebix’s current market position appears bearish, with stock prices dropping below key moving averages and lower-than-usual trading volume, coupled with overbought conditions that exceed expectation. Investors should closely follow these indicators in order to make informed decisions regarding buying, selling or holding Ebix shares.
Quarter Analysis
Ebix’s current financial performance seems dismal based on available data, with both negative sales growth and revenue growth estimates for both quarters being negative. Sales projections show a decrease of nearly 42% across both quarters; estimated negative 88.1% growth estimate for both current and next quarter indicate its expected decrease over time.
Quarterly revenue growth dropped 52.8% year-on-year to reach $874.3M over twelve trailing months, signalling to investors that this company may be having difficulty generating enough income and growing its business.
Overall, Ebix’s current financial performance and growth estimates are negative; revenue has seen a drastic decrease. Investors should proceed with caution when considering investing in this stock and carefully assess its fundamentals before making their decision.
Equity Analysis
According to available data, Ebix (EBIX) appears to be an investment with a moderate dividend yield and low PE ratio. With an estimated forward annual dividend yield of 4.84% and trailing twelve month price-earnings ratio of 4.45 respectively, it could offer reliable income-generating investments for dividend hunters. On the downside, its trailing twelve months price-earnings ratio indicates it may be overvalued compared with its earnings.
Return on equity of 4.64% over twelve trailing months is also encouraging, showing that profits have been generated relative to shareholder equity. However, it should be remembered that this does not always indicate future profitability for a company.
Before investing, investors must carefully examine a company’s fundamentals – its financial strength, growth prospects and industry outlook – as well as consulting a financial advisor to ascertain whether Ebix fits with individual investment goals and risk tolerance.
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