HC2 Holdings Inc. [NYSE: HCHC] gained 9.94% or 0.35 points to close at $3.87 with a heavy trading volume of 1902959 shares. The company report on December 9, 2020 that Usio Signs Letter of Intent to Acquire the Assets of Information Management Solutions.
Prospective Accretive Acquisition Expected to Add New Utilities, Telecom and Financial Institution Customers as Well as Proprietary Document Composition Technology, Including Electronic Bill Presentment, to Support Key Growth Initiatives.
Usio, Inc. (Nasdaq: USIO), an integrated electronic payment solutions provider, announced that it has entered into a non-binding Letter of Intent (LOI) to acquire the assets of Information Management Solutions, LLC (IMS). IMS is an established provider of electronic bill presentment, document composition, document decomposition and printing and mailing services serving hundreds of customers representing a wide range of industry verticals, including utilities and financial institutions. Louis Hoch, President and Chief Executive Officer of Usio, said, “We are pleased to announce that we have entered into a non-binding LOI to acquire IMS. We expect that the acquisition of IMS will not only be immediately accretive, but when and if closed, will also be highly synergistic, creating opportunities to cross and up-sell Usio’s core Payment Facilitation, Prepaid and ACH services to the IMS customer base through the integration of Usio’s proprietary technology, including bill payment. Furthermore, it will provide Usio a means to re-enter the EBPP industry, one which we were the dominant leader as Billserv, from 1998-2003. In addition, IMS broadens the scope of services currently being offered to the verticals currently targeted and served by Usio, as there is significant overlap that we believe will lead to a clear and measurable impact in short order.”.
It opened the trading session at $3.70, the shares rose to $4.05 and dropped to $3.66, the range by which the price of stock traded the whole day. The daily chart for HCHC points out that the company has recorded 23.64% gains over the past six months. However, it is still -200.0% lower than its most recent low trading price.
If we look at the average trading volume of 397.23K shares, HCHC reached to a volume of 1902959 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about HC2 Holdings Inc. [HCHC]:
B. Riley FBR Inc. have made an estimate for HC2 Holdings Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 09, 2017.
The Average True Range (ATR) for HC2 Holdings Inc. is set at 0.24, with the Price to Sales ratio for HCHC stock in the period of the last 12 months amounting to 0.11. The Price to Book ratio for the last quarter was 0.49, with the Price to Cash per share for the same quarter was set at 3.42. Price to Free Cash Flow for HCHC in the course of the last twelve months was 3.00.
Trading performance analysis for HCHC stock
HC2 Holdings Inc. [HCHC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 11.21. With this latest performance, HCHC shares gained by 62.61% in over the last four-week period, additionally plugging by 23.64% over the last 6 months – not to mention a rise of 68.26% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for HCHC stock in for the last two-week period is set at 86.65, with the RSI for the last a single of trading hit 91.93, and the three-weeks RSI is set at 79.61 for HC2 Holdings Inc. [HCHC]. The present Moving Average for the last 50 days of trading for this stock 2.58, while it was recorded at 3.57 for the last single week of trading, and 2.69 for the last 200 days.
HC2 Holdings Inc. [HCHC]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and HC2 Holdings Inc. [HCHC] shares currently have an operating margin of +4.06 and a Gross Margin at +26.65. HC2 Holdings Inc.’s Net Margin is presently recorded at -1.50.
Return on Total Capital for HCHC is now 6.88, given the latest momentum, and Return on Invested Capital for the company is -3.50. Return on Equity for this stock declined to -12.68, with Return on Assets sitting at -0.44. When it comes to the capital structure of this company, HC2 Holdings Inc. [HCHC] has a Total Debt to Total Equity ratio set at 253.90. Additionally, HCHC Total Debt to Total Capital is recorded at 71.74, with Total Debt to Total Assets ending up at 13.14. Long-Term Debt to Equity for the company is recorded at 187.39, with the Long-Term Debt to Total Capital now at 51.44.
Reflecting on the efficiency of the workforce at the company, HC2 Holdings Inc. [HCHC] managed to generate an average of -$7,967 per employee. Receivables Turnover for the company is 2.29 with a Total Asset Turnover recorded at a value of 0.30.
HC2 Holdings Inc. [HCHC]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, HC2 Holdings Inc. posted -0.66/share EPS, while the average EPS was predicted by analysts to be reported at -0.25/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -164.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for HCHC.
An analysis of insider ownership at HC2 Holdings Inc. [HCHC]
There are presently around $72 million, or 45.20% of HCHC stock, in the hands of institutional investors. The top three institutional holders of HCHC stocks are: JEFFERIES GROUP LLC with ownership of 3,524,974, which is approximately 0% of the company’s market cap and around 3.60% of the total institutional ownership; BLACKROCK INC., holding 2,766,202 shares of the stock with an approximate value of $10.71 million in HCHC stocks shares; and VANGUARD GROUP INC, currently with $8.15 million in HCHC stock with ownership of nearly 9.147% of the company’s market capitalization.
28 institutional holders increased their position in HC2 Holdings Inc. [NYSE:HCHC] by around 1,708,615 shares. Additionally, 52 investors decreased positions by around 2,495,193 shares, while 19 investors held positions by with 14,300,172 shares. The mentioned changes placed institutional holdings at 18,503,980 shares, according to the latest SEC report filing. HCHC stock had 13 new institutional investments in for a total of 414,087 shares, while 20 institutional investors sold positions of 1,024,759 shares during the same period.