Hudson Technologies Inc. [NASDAQ: HDSN] closed the trading session at $1.42 on 12/10/20. The day’s price range saw the stock hit a low of $1.37, while the highest price level was $1.49. The company report on November 6, 2020 that Hudson Technologies Reports Third Quarter 2020 Results.
Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the third quarter and nine months ended September 30, 2020.
For the quarter ended September 30, 2020, Hudson reported revenues of $41.5 million, a decrease of 9% compared to revenues of $45.6 million in the comparable 2019 period. The decrease is primarily due to a decline in volume, as the continued COVID-19 pandemic and the associated closures of public venues such as office buildings, gyms, schools and universities across the U.S. negatively impacted the Company’s end markets and overall demand for refrigerants. Gross margin in the third quarter of 2020 was 22%, compared to 17% in the third quarter of 2019. The Company reported operating income of $2.1 million for the third quarter of 2020 compared to an operating loss of $1.2 million in the third quarter of 2019. The Company recorded net income of $39,000 or $0.00 per basic and diluted share in the third quarter of 2020, compared to net income of $2.7 million or $0.06 per basic and diluted share in the same period of 2019. During the third quarter of 2019, the Company received $8.9 million in proceeds from the working capital settlement arising from the acquisition of Aspen Refrigerants, Inc. (“ARI”), which led to the net profit in that quarter. Hudson recorded non-GAAP Adjusted EBITDA of $4.6 million in the third quarter of 2020 compared to Adjusted EBITDA of $3.9 million in the third quarter of 2019. (Adjusted EBITDA is a non-GAAP financial measure – see the description of Adjusted EBITDA and tabular Reconciliation of Net Income (Loss) to Adjusted EBITDA in the supplemental table included at the end of this release). For the nine months ended September 30, 2020, Hudson reported revenues of $125.5 million, a decrease of 8% compared to $136.3 million in the first nine months of 2019. The decrease in revenue was primarily due to decreased volume, related to the pandemic-driven closures described above. Gross margin for the first nine months of 2020 improved to 24% compared to gross margin of 9% for the same period in 2019. The Company reported operating income of $7.7 million for the first nine months of 2020 compared to an operating loss of $11.0 million in the first nine months of 2019. The Company’s net loss for the first nine months of 2020 was $0.5 million, or ($0.01) per basic and diluted share, compared to a net loss of $15.2 million, or ($0.36) per basic and diluted share, in the first nine months of 2019, which included a $9.2 million non-cash inventory adjustment offset by the $8.9 settlement proceeds described above. For the first nine months of 2020, Hudson recorded non-GAAP Adjusted EBITDA of $15.7 million compared to Adjusted EBITDA of $9.9 million in the first nine months of 2019. For the trailing twelve months ended September 30, 2020, Hudson recorded non-GAAP Adjusted EBITDA of $14.9 million, a 75% increase from the $8.5 million of Adjusted EBITDA recorded during the trailing twelve months ended September 30, 2019. (Adjusted EBITDA is a non-GAAP financial measure – see the description of Adjusted EBITDA and tabular Reconciliation of Net Income (Loss) to Adjusted EBITDA in the supplemental table included at the end of this release).
The stocks have a year to date performance of 45.27 percent and weekly performance of -14.46 percent. The stock has been moved at 32.71 percent over the last six months. The stock has performed 18.33 percent around the most recent 30 days and changed 19.33 percent over the most recent 3-months.
If compared to the average trading volume of 438.93K shares, HDSN reached to a volume of 1544450 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Hudson Technologies Inc. [HDSN]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for HDSN shares is $1.32 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on HDSN stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
ROTH Capital have made an estimate for Hudson Technologies Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on August 12, 2019. While these analysts kept the previous recommendation, B. Riley FBR Inc. dropped their target price from $7.50 to $6.50. The new note on the price target was released on March 06, 2018, representing the official price target for Hudson Technologies Inc. stock. On December 23, 2013, analysts increased their price target for HDSN shares from 3.50 to 6.75.
The Average True Range (ATR) for Hudson Technologies Inc. is set at 0.13, with the Price to Sales ratio for HDSN stock in the period of the last 12 months amounting to 0.42. The Price to Book ratio for the last quarter was 1.34, with the Price to Cash per share for the same quarter was set at 0.21. Price to Free Cash Flow for HDSN in the course of the last twelve months was 2.73 with Quick ratio for the last quarter at 0.70.
HDSN stock trade performance evaluation
Hudson Technologies Inc. [HDSN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -14.46. With this latest performance, HDSN shares gained by 18.33% in over the last four-week period, additionally plugging by 32.71% over the last 6 months – not to mention a rise of 95.92% 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 HDSN stock in for the last two-week period is set at 55.00, with the RSI for the last a single of trading hit 51.55, and the three-weeks RSI is set at 56.85 for Hudson Technologies Inc. [HDSN]. The present Moving Average for the last 50 days of trading for this stock 1.2076, while it was recorded at 1.5360 for the last single week of trading, and 1.0250 for the last 200 days.
Hudson Technologies Inc. [HDSN]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Hudson Technologies Inc. [HDSN] shares currently have an operating margin of -9.74 and a Gross Margin at +7.87. Hudson Technologies Inc.’s Net Margin is presently recorded at -16.01.
Return on Total Capital for HDSN is now -8.98, given the latest momentum, and Return on Invested Capital for the company is -17.27. Return on Equity for this stock declined to -45.38, with Return on Assets sitting at -12.70. When it comes to the capital structure of this company, Hudson Technologies Inc. [HDSN] has a Total Debt to Total Equity ratio set at 237.41. Additionally, HDSN Total Debt to Total Capital is recorded at 70.36, with Total Debt to Total Assets ending up at 59.45. Long-Term Debt to Equity for the company is recorded at 194.46, with the Long-Term Debt to Total Capital now at 57.63.
Reflecting on the efficiency of the workforce at the company, Hudson Technologies Inc. [HDSN] managed to generate an average of -$110,855 per employee. Receivables Turnover for the company is 14.65 with a Total Asset Turnover recorded at a value of 0.79.Hudson Technologies Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 1.80.
Earnings per share (EPS) analysis for Hudson Technologies Inc. [HDSN] stock
With the latest financial reports released by the company, Hudson Technologies Inc. posted -0.25/share EPS, while the average EPS was predicted by analysts to be reported at -0.12/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -108.30%. 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 HDSN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Hudson Technologies Inc. go to 30.00%.
Hudson Technologies Inc. [HDSN]: Insider Ownership positions
There are presently around $22 million, or 38.20% of HDSN stock, in the hands of institutional investors. The top three institutional holders of HDSN stocks are: COOPER CREEK PARTNERS MANAGEMENT LLC with ownership of 4,178,842, which is approximately -0.187% of the company’s market cap and around 1.30% of the total institutional ownership; ARROWMARK COLORADO HOLDINGS LLC, holding 3,846,813 shares of the stock with an approximate value of $5.46 million in HDSN stocks shares; and VANGUARD GROUP INC, currently with $2.11 million in HDSN stock with ownership of nearly 0% of the company’s market capitalization.
Positions in Hudson Technologies Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 9 institutional holders increased their position in Hudson Technologies Inc. [NASDAQ:HDSN] by around 662,835 shares. Additionally, 14 investors decreased positions by around 554,024 shares, while 11 investors held positions by with 14,586,045 shares. The mentioned changes placed institutional holdings at 15,802,904 shares, according to the latest SEC report filing. HDSN stock had 2 new institutional investments in for a total of 147,211 shares, while 2 institutional investors sold positions of 1,610 shares during the same period.