Gridsum Holding Inc. (GSUM): A Gold Mine for Growth Investors

The number of Gridsum Holding Inc. (NASDAQ:GSUM) shares shorted has fallen by 246,075 shares. When looking at a stock for a potential investment, you want to know what percentage of Wall Street is betting against you. That’s what short interest tells you. The most recent short interest data has been released for the January 31st settlement date, which shows a decrease in total short interest for GSUM, to 131,182, a retreat of 65.23% since January 15th. Average daily volume for Gridsum Holding Inc. at the January 31st settlement plunged to 215,799, as compared to 537,171 at the January 15th report. That brought days to cover to 1, a 0% decrease from the 1 days to cover recorded at the prior short interest data release. Looking at the experts’ opinion for the GSUM stock we see that the average analyst recommendations at 0 suggests selling these shares.

The stock is currently hovering around the first support level of $2.64. Below this, the next support is placed in the zone of $2.13. Till the time, the GSUM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 66.93 on daily chart, which may remain a cause for concern. If the price breaks below $2.13 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $3.9 mark may result into a pull-back move towards $4.65 level.

On 13th of February, Gridsum Holding Inc. (NASDAQ:GSUM) shares ended higher after a volatile session. The shares accumulated 0.38 points or 13.75 percent at $3.15 with a light trade volume of 4.334 million shares. After opening the session at $2.88, the shares went as high as $4.14 and as low as $2.88, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $110 million and now has 34.88 million shares outstanding. Gridsum Holding Inc. (GSUM) stock has gained 93.25 percent of market value in 21 trading days.

GSUM stock has a trailing 3-year beta of 0, 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 -$1.59 a share in the trailing twelve months. The stock’s value has surged 41.26 percent year to date (YTD) against a decline of -70.62 percent in 12 month’s time. The company’s shares still trade -72 percent away from its 1-year high of $11.25 and 144.19 percent up from 52-week low of $1.29. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Gridsum Holding Inc. (GSUM) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry GSUM operates in has an average P/E of 32.3. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 1.49 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8398.83. 79.3 percent is the gross profit margin for Gridsum Holding Inc. and operating margin sits at -62.2 percent. Along with this, the net profit margin is -66.7 percent.

Let’s take a look at some insider activity at Gridsum Holding Inc. (NASDAQ:GSUM) and see the pattern.