Houghton Mifflin Harcourt Company (HMHC): What’s the Story?

Houghton Mifflin Harcourt Company (HMHC) is an interesting player in the Services space, with a focus on Education & Training Services. The stock has been active on the tape, currently trading at $9.30, down from yesterday’s close by -0.53%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Houghton Mifflin Harcourt Company (HMHC) currently trades with a market capitalization of $1.15 Billion. That value represents a market adjusting for revenues that have been falling by -0.18 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $116.38 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.9 on a per share basis this quarter. Perhaps, that suggests something about why 0.66% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Houghton Mifflin Harcourt Company recorded a 52-week high of $13.95. It is now trading 4.65% off that level. The stock is trading $9.57 its 50-day moving average by 0.27%. The stock carved out a 52-week low down at $8.05.

In recent action, Houghton Mifflin Harcourt Company (HMHC) has made a move of -4.62% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 5.65% with $122.70 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of HMHC.

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