Ebix Inc. (EBIX) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Ebix Inc. (NASDAQ: EBIX) stock jumped 1.36% on Wednesday to $19.36 against a previous-day closing price of $19.10. With 0.23 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.47 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $19.92 whereas the lowest price it dropped to was $18.64. The 52-week range on EBIX shows that it touched its highest point at $44.42 and its lowest point at $12.50 during that stretch. It currently has a 1-year price target of $99.50. With its current market cap of 627.46 million, EBIX has annualized dividend of $0.30 while the current yield stands at 1.55%. Beta for the stock currently stands at 2.54.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of EBIX was down-trending over the past week, with a drop of -3.44%, but this was down by -2.37% over a month. Three-month performance dropped to -23.27% while six-month performance fell -33.17%. The stock lost -44.59% in the past year, while it has lost -36.32% so far this year. A look at the trailing 12-month EPS for EBIX yields 2.35 with Next year EPS estimates of 2.92. For the next quarter, that number is 0.64. This implies an EPS growth rate of -26.30% for this year and 18.94% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -4.90%.

Float and Shares Shorts:

At present, 30.78 million EBIX shares are outstanding with a float of 24.26 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.17 million, which was 19.95% higher than short shares on Sep 14, 2022. In addition to Mr. Robin Raina as the firm’s Chairman, CEO & Pres, Mr. Steven M. Hamil serves as its Corp. Exec. VP & Global CFO.

Institutional Ownership:

Through their ownership of 69.90% of EBIX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.22% of EBIX, in contrast to 39.88% held by mutual funds. Shares owned by individuals account for 28.63%. As the largest shareholder in EBIX with 11.56% of the stake, BlackRock Fund Advisors holds 3,573,281 shares worth 3,573,281. A second-largest stockholder of EBIX, The Vanguard Group, Inc., holds 2,884,327 shares, controlling over 9.33% of the firm’s shares. St. Denis J. Villere & Co. LLC is the third largest shareholder in EBIX, holding 1,442,977 shares or 4.67% stake. With a 5.64% stake in EBIX, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 1,742,765 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.48% of EBIX stock, is the second-largest Mutual Fund holder. It holds 765,121 shares valued at 15.14 million. Vanguard Small Cap Index Fund holds 2.06% of the stake in EBIX, owning 635,716 shares worth 12.58 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EBIX since 2 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With EBIX analysts setting a high price target of $150.00 and a low target of $49.00, the average target price over the next 12 months is $99.50. Based on these targets, EBIX could surge 674.79% to reach the target high and rise by 153.1% to reach the target low. Reaching the average price target will result in a growth of 413.95% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. EBIX will report FY 2022 earnings on 03/02/2023. Analysts have provided yearly estimates in a range of $2.86 being high and $2.42 being low. For EBIX, this leads to a yearly average estimate of $2.64. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ebix Inc. surprised analysts by $0.08 when it reported $0.70 EPS against a consensus estimate of $0.62. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is $0.76 and the low estimate is $0.57. The average estimate for the next quarter is thus $0.67.

Dividends & Yield:

In terms of dividends, EBIX has a current ratio of $0.3, which is $0.3 over the trailing 12-months, while a dividend of $0.3 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and EBIX currently yields $1.62. In the past year, EBIX’s dividend yield has been $1.62, but when looking at the stock over the past five years, its yield has been $0.9. Accordingly, EBIX has a current buyback yield of $0.24. This was $0.24 for the TTM, and it was $1.36 for the past five years.

Summary of Insider Activity:

Insiders traded EBIX stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has remained unchanged to 0 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 0 while 40,000 shares were sold.

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