(VIANEWS) – Ebix (NASDAQ: EBIX) shares crashed by 20.47% to EUR3.89 on Thursday at 21:23 EST, signalling the end of three consecutive sessions of losses and leaving its 52-week high at EUR32.87 85.14% below. Nonetheless, the NASDAQ remained bullish, rising 0.25% over this same timeframe to EUR13,683.91.
About Ebix
Ebix, Inc. is a premier provider of on-demand software exchanges and e-commerce services to industries including insurance, financial, travel, cash remittance and healthcare. Its services include cloud-based enterprise solutions for customer relationship management, front-end and back-end systems development, outsourced administrative and risk compliance support services and outsourced administrative management. EbixCash provides gift cards, travel exchanges, money transfer services, foreign exchange rates and consumer payment services as well as on-demand technology solutions to lending institutions, wealth and asset managers and travel providers. Insurance exchanges from Ebix provide SaaS platforms, software licensing agreements, professional services and professional consulting solutions while risk compliance services include certificates of insurance creation/tracking services as well as consulting and business process outsourcing. Founded in 1976 and based out of Johns Creek Georgia since then formerly known as Delphi Systems Inc, Ebix, Inc has seen immense growth since 1976 when they first came out under their previous name Delphi Systems, Inc.
Yearly Analysis
Based on this information, Ebix appears to be undervalued relative to its 52-week low. This could present investors who believe in its long-term prospects with an opportunity. Unfortunately, negative sales growth projections for both this year and next suggest that revenue generation may present significant difficulties for Ebix.
Ebix is profitable with an EBITDA score of 42.8; however, this metric does not take into account capital expenditures, working capital changes or any other key aspects that affect its cash flow.
Overall, investors should exercise extreme caution and conduct comprehensive research before investing in Ebix. Wait until there is more positive forecast on its sales growth and financial performance before considering purchasing Ebix stock.
Technical Analysis
Ebix Inc. (EBIX) has experienced a steep decrease in its stock price, trading at EUR5.54 at time of writing. This value lies well below both its 50-day moving average of EUR10.08 and 200-day moving average of EUR17.00; both indicators suggest bearish trends in both short- and long-term periods.
However, despite its bearish outlook, today’s trading volume of 1988795 was 588.8% greater than its average volume of 1251710 indicating some buying interest for the stock.
Ebix stock has experienced negative variations in its intraday prices over the last week, month and quarter with average volatility averages of 1.89%, 1.44% and 5.52%, respectively. Ebix’s highest amplitude of average volatility during these timeframes was 4.46% for last week 5.22% last month and 5.52% this quarter.
Ebix stock was also identified by the stochastic oscillator as being overbought (>=80), suggesting it may be ready for a pullback.
Ebix stock price may currently be in a downward trend; however, higher trading volume and potential buying interest indicate it may not be oversold despite what its bearish indicators may suggest. It is still wise to monitor Ebix closely and beware any pullbacks in performance that might arise.
Quarter Analysis
Based on available data, Ebix appears to be experiencing financial decline. Negative sales growth for both quarters under consideration along with negative growth estimates suggests that revenue may continue to decrease rapidly in the coming quarters.
Year-on-year quarterly revenue growth of 52.8% suggests that revenue has significantly declined during the past twelve months.
Before investing, investors should take caution and thoroughly research this stock, taking into account factors like its financial health, management capabilities and competitive position of the company in question. In addition, seeking advice from an investment professional may also be wise.
Equity Analysis
Based on the available data, Ebix appears to have an average investment outlook. With its relatively low PE ratio of 3.56 and its dividend yield of 4.84% providing investors with regular streams of income.
Note, however, that the company’s ROE of 4.64% may indicate it may not be producing significant profits relative to shareholder equity. Furthermore, their EPS figure of EUR1.09 could indicate their earnings growth potential may be limited.
Overall, Ebix may be an appropriate investment choice for income-seeking investors; however it’s essential that prospective investors carefully consider all relevant information prior to making their decision. It would also be prudent to conduct further research and analysis to ascertain whether Ebix suits your personal investment goals and risk tolerance.
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