Should you drop your Spok Holdings (USA Stocks:SPOK) positions thanks to the latest analyst consensus?
 | By Gabriel Shpitalnik | Macroaxis Story |
Spok Holdings (NASDAQ: SPOK), a leading player in the Healthcare and Health Information Services industry, recently experienced a slight dip of over 2% in its stock price. This comes amidst a backdrop of a Total Risk Alpha of -0.18 and a Value At Risk of -4.64, indicating a potentially risky investment environment. However, this dip could present a unique buying opportunity for savvy investors. Despite the dip, Spok Holdings has shown some promising financial figures. The company reported a Net Income From Continuing Ops of $21.9 million and a Net Income Applicable To Common Shares of the same amount. Additionally, the company has a Current Deferred Revenue of $26.3 million, indicating a healthy pipeline of income for the future. The company's Operating Income stands at $14.9 million, with a Change To Netincome of $4.7 million. This demonstrates a solid financial performance, despite the recent dip in the stock price. Moreover, Spok Holdings has a Forward Dividend Rate of $1.25, which could be attractive for income-focused investors. The company's 52 Week High and Low stand at $13.84 and $5.6469 respectively, indicating a wide trading range. The Analyst Target Price Estimated Value is $15, suggesting potential upside from the current levels. The company's shares are also not heavily shorted, with a Short Ratio of 1.91 and Shares Short of 522.3K. In conclusion, while Spok Holdings has experienced a slight dip recently, its strong financial performance and potential upside could make it an attractive buy for investors. However, investors should also consider the company's risk metrics and the overall market conditions before making an investment decision. Spok Holdings is set to announce its earnings today. While some millennials may still be hesitant to venture into the wireless telecommunication services sector, I will delve deeper into Spok Holdings to assess its potential as a sound investment. We will determine whether Spok Holdings shares are reasonably priced in light of the current economic outlook.
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Reviewed by Raphi Shpitalnik
The asset utilization ratio is an indicator that denotes the revenue generated for every dollar of assets a company presently holds. Spok Holdings has an asset utilization ratio of 55.03 percent, indicating that the company generates $0.55 for each dollar of assets. An increase in asset utilization signifies that Spok Holdings is becoming more efficient in using each dollar of assets for its daily operations.
Additional evaluation
Spok Holdings, a prominent player in the Health Information Services industry, recently experienced a slight dip of over 2% in its stock price, which may present a potential buying opportunity for savvy investors. The company's stock, traded under the ticker SPOK, opened at $11.55 and saw a price change of -$0.28, translating to a price percent change of -2.42%. Despite this, Spok Holdings boasts a positive return on assets of 0.0443, indicating efficient use of its assets to generate earnings. Furthermore, the company reported an operating income of $14.9 million and a net income applicable to common shares of $21.9 million. However, investors should be aware of the company's total risk alpha of -0.18, which suggests a potential for loss. In conclusion, while Spok Holdings presents certain risks, its recent price dip coupled with its positive earnings could make it an attractive investment opportunity. What is the right price you would pay to acquire a share of Spok Holdings? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.
What is happening with Spok Holdings this year
Annual and quarterly reports issued by Spok Holdings are formal financial statements that are published yearly and quarterly and sent to Spok stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Spok Holdings often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Spok Holdings Gross Profit
Spok Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Spok Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Spok Holdings Gross Profit growth over the last 10 years. Please check Spok Holdings' gross profit and other fundamental indicators for more details.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Spok Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.