This Simple Rating Report Sets the Tone in Glu Mobile Inc. (GLUU)

Analysts at Stephens, assumed coverage of Glu Mobile Inc. (NASDAQ:GLUU) with Overweight recommendation, according to their opinion released on January 11. ROTH Capital analysts have downgraded their rating of GLUU stock from Buy to Neutral in a separate flash note to investors on October 08.

Bears have made their way to Glu Mobile Inc. (NASDAQ:GLUU) as short interest on GLUU stock has climbed by 1,998 shares during the most recent reporting period. The most recent short interest data has been released for the December 31st settlement date, which shows a increase in total short interest for GLUU, to 7,552,408, a surge of 0.03% since December 14th. Average daily volume for Glu Mobile Inc. at the December 31st settlement plunged to 2,062,924, as compared to 2,525,156 at the December 14th report. That brought days to cover to 3.661021, a 22.44% increase from the 2.990077 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Glu Mobile Inc. (NASDAQ:GLUU)’s prospects. The earliest insider trade took place on 12/06/2018. Smith Benjamin T. Iv parted with a total of 179.6 thousand shares of company at average share price of $7.37. The total for the sales was set at $1.32 million. After this transaction, the Director account balance stood at 10 thousand shares. The stock grew 27.27 percent since that insider sale. On 11/07/2018, Akhavan Chris, Chief Revenue Officer, sold 39.9 thousand shares at a price per share of $8.09. This removed 322.82 thousand shares from the insider’s fortune and the stock saw a 15.95 percent rally in value since the news became public. This transaction left 0 thousand shares in the Chief Revenue Officer account. On 11/05/2018, Executive Chairman De Masi Niccolo performed a sale transaction worth $626.06 thousand. This sale at $7.01 each has eliminated 89.31 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 33.81 percent increase since the transaction was reported. The insider now is left with 766.67 thousand shares remaining in the account. Mather Ann, who performs the Director job, sold 100 thousand shares for $631 thousand. The disposal occurred on 10/08/2018 was priced at $6.31 per share. The share price soared 48.65 percent since the reporting date. Mather Ann now left with a stake of 53.67 thousand GLUU stock worth $503.39 thousand after the insider selling.

Glu Mobile Inc. (GLUU) is expected to jump by -13.86 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $10.5-month high price target. This represents a whopping 11.94 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $8, which represents a return potential of -14.71 percent when compared to the closing price of the stock of $9.38 on Friday, January 11. The lowest price target for the stock is $7 — slightly more than -25.37 percent from GLUU’s current share price.

The shares are currently floating around the first support level of $9.09. Below this, the next support is placed in the zone of $8.79. Till the time, the GLUU stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 68.78 on daily chart, which may remain a cause for concern. If the price breaks below $8.79 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $9.7 mark may result into a pull-back move towards $10.02 level.

GLUU shares accumulated 0.29 points or 3.19 percent on Friday to $9.38 with a heavy trade volume of 4.945 million shares. After opening the session at $9.26, the shares went as high as $9.73 and as low as $9.115, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.3 billion and now has 138.82 million shares outstanding. Glu Mobile Inc. (GLUU) stock has gained 16.09 percent of market value in 21 trading days.

GLUU stock has a trailing 3-year beta of 0.78, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.63 a share in the trailing twelve months. The stock’s value has surged 16.23 percent year to date (YTD) against a rise of 154.89 percent in 12 month’s time. The company’s shares still trade 3.08 percent away from its 1-year high of $9.10 and 210.6 percent up from 52-week low of $3.02. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Glu Mobile Inc. (GLUU) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry GLUU operates in has an average P/E of 39.5. Its P/E ratio went as low as 46.39X and as high as 46.39 over the 5-year span. Further, it is sporting a 3.71 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7458.41. 54.5 percent is the gross profit margin for Glu Mobile Inc. and operating margin sits at -12.4 percent. Along with this, the net profit margin is -14.7 percent.

GLUU will be showing off its Q4 earnings on February 06. Analysts are forecasting revenue to climb 15.4 percent to $95.98M in the next fiscal quarter, while earnings are seen soaring by nearly -130.43 percent to $0.07 per share. History has shown that shares in Glu Mobile Inc. have gone down on 21 different earnings reaction days and are predicted to add 0.1 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.09 per share, better than the $0.07, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $101M, better than the $96.14M analysts expected. Earnings are estimated to increase by -47.1 percent this year, 31.44 percent next year and continue to increase by 15 percent annually for the next 5 years.