Farmmi Inc. [FAMI] Stock trading around $0.28 per share: What’s Next?

Farmmi Inc. [NASDAQ: FAMI] stock went on a downward path that fall over -51.30% on Monday, amounting to a one-week price decrease of less than -31.71%. The company report on September 13, 2021 that Farmmi, Inc. Prices $81 Million Underwritten Public Offering of Ordinary Shares and Pre-Funded Warrants to Purchase Ordinary Shares.

Farmmi, Inc. (“Farmmi” or the “Company”) (NASDAQ: FAMI), an agriculture products supplier in China, announced the pricing of an underwritten public offering of ordinary shares and pre-funded warrants to purchase ordinary shares (“Offering”), with gross proceeds to the Company expected to be approximately $81 million, before deducting underwriting discounts and commissions and other estimated expenses payable by the Company. The Offering equates to 368,261,717 of the Company’s ordinary shares at a price of $0.22 per share. The pre-funded warrants shall be offered at the same price per share as the ordinary shares, less the $0.0001 per share exercise price of each pre-funded warrant. The Company intends to use the net proceeds from this Offering for general corporate and working capital needs and capital expenditures. The ordinary shares are trading on The Nasdaq Capital Market under the symbol “FAMI”. The closing of the Offering is expected to occur on September 15, 2021, subject to customary closing conditions.

Aegis Capital Corp. is acting as the sole book-running manager for the offering.

Over the last 12 months, FAMI stock dropped by -64.56%.

The market cap for the stock reached $39.49 million, with 20.86 million shares outstanding and 17.53 million shares in the current float. Compared to the average trading volume of 14.46M shares, FAMI stock reached a trading volume of 291880491 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Farmmi Inc. [FAMI]:

The Average True Range (ATR) for Farmmi Inc. is set at 0.05, with the Price to Sales ratio for FAMI stock in the period of the last 12 months amounting to 1.15. The Price to Book ratio for the last quarter was 0.15, with the Price to Cash per share for the same quarter was set at 0.10. Price to Free Cash Flow for FAMI in the course of the last twelve months was 16.45 with Quick ratio for the last quarter at 5.80.

FAMI Stock Performance Analysis:

Farmmi Inc. [FAMI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -31.71. With this latest performance, FAMI shares dropped by -31.37% in over the last four-week period, additionally sinking by -81.82% over the last 6 months – not to mention a drop of -64.56% 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 FAMI stock in for the last two-week period is set at 37.83, with the RSI for the last a single of trading hit 35.42, and the three-weeks RSI is set at 39.30 for Farmmi Inc. [FAMI]. The present Moving Average for the last 50 days of trading for this stock 0.4059, while it was recorded at 0.4281 for the last single week of trading, and 0.8525 for the last 200 days.

Insight into Farmmi Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Farmmi Inc. [FAMI] shares currently have an operating margin of +6.96 and a Gross Margin at +16.46. Farmmi Inc.’s Net Margin is presently recorded at +2.73.

Return on Total Capital for FAMI is now 6.79, given the latest momentum, and Return on Invested Capital for the company is 3.26. Return on Equity for this stock inclined to 3.31, with Return on Assets sitting at 2.40. When it comes to the capital structure of this company, Farmmi Inc. [FAMI] has a Total Debt to Total Equity ratio set at 21.57. Additionally, FAMI Total Debt to Total Capital is recorded at 17.74, with Total Debt to Total Assets ending up at 15.97. Long-Term Debt to Equity for the company is recorded at 2.37, with the Long-Term Debt to Total Capital now at 1.95.

Reflecting on the efficiency of the workforce at the company, Farmmi Inc. [FAMI] managed to generate an average of $11,936 per employee. Receivables Turnover for the company is 2.45 with a Total Asset Turnover recorded at a value of 0.88.Farmmi Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 5.80 and a Current Ratio set at 5.90.

Farmmi Inc. [FAMI] Insider Position Details

There are presently around $1 million, or 10.00% of FAMI stock, in the hands of institutional investors. The top three institutional holders of FAMI stocks are: RENAISSANCE TECHNOLOGIES LLC with ownership of 1,574,516, which is approximately 319.648% of the company’s market cap and around 5.76% of the total institutional ownership; CITADEL ADVISORS LLC, holding 402,699 shares of the stock with an approximate value of $0.11 million in FAMI stocks shares; and GEODE CAPITAL MANAGEMENT, LLC, currently with $29000.0 in FAMI stock with ownership of nearly New of the company’s market capitalization.

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9 institutional holders increased their position in Farmmi Inc. [NASDAQ:FAMI] by around 1,830,977 shares. Additionally, 2 investors decreased positions by around 83,351 shares, while 0 investors held positions by with 429,802 shares. The mentioned changes placed institutional holdings at 2,344,130 shares, according to the latest SEC report filing. FAMI stock had 7 new institutional investments in for a total of 319,078 shares, while 1 institutional investors sold positions of 56,021 shares during the same period.

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