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.
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.
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.
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.