Houghton Mifflin Harcourt Company (HMHC): Why its showing bear behavior?

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Houghton Mifflin Harcourt Company (NASDAQ:HMHC) changes shares on Monday trading session, with a change of -2.86% or -$0.06 shares. The trading starts at $2.07 and closed at $2.10 throughout the day. The trading session low price was $1.89 and day high was $2.10 on Monday, June 22. After the session, the Consumer Defensive sector daily volume shifted to 1.48 million while its average volume is 1.34M. In other hand, the HMHC market cap reached to $248.49M. While, its current target price is $2.04 according to WSJ.

Checking out the performance report which defines the increase or decrease of prices for a specific period. For the last 5 trading sessions, its performance is up 5.15% and up 44.68% for month. Its quarterly performance was -11.30% below, while its half year performance is down -65.13%. HMHC yearly performance stood at negative -61.58% and fall -67.36% for year-to-date. Current recommendation for Houghton Mifflin Harcourt Company is 3.20.

Earnings per share or EPS is an important financial measure, which defines the profitability of a company. HMHC EPS (TTM) for 12-month is -3.55. EPS for this year is -54.70%, while for the next year its value is -1.05. Its EPS Q/Q reached -192.70%. It has an EPS of -16.80% down for past five years and for the next five years will be up 5.00%.

Let’s take a look on the analyst recommendations on HMHC for the current month and previous month. For the current month, 1 of 6 analysts recommend stock as Buy while 1 as Sell, 0 as overweight, 0 as underweight and 4 as Hold. As compared with the previous month ratings, 5 analysts participate in stock recommendation. Out of 5, 0 rated it sell, 2 rated it as Buy and 3 as Hold Ratings. On the other hand, target price ranges from $1.00-$5.50. Average target price for HMHC was reached at $2.83.

Anchorage Capital Group, LLC, Wellington Management Company, LLP and Vanguard Group, Inc. (The) are the top three holders in Houghton Mifflin Harcourt Company (HMHC) stock. On Mar 30, 2020, Anchorage Capital Group, LLC has 19.47 million shares which valued 36.6 million. On Mar 30, 2020, Wellington Management Company, LLP owned 15.36 million shares which valued at 28.88 million. On Mar 30, 2020, Vanguard Group, Inc. (The) has a total of 9.6 million shares which valued at 18.05 million. In the end, Vanguard Group, Inc. (The) have 7.66% shares outstanding of Houghton Mifflin Harcourt Company (HMHC) on Mar 30, 2020. The insider ownership moved to 0.70% and institutional holding shifted to 98.50%.

The company posted an EPS (TTM) of -3.55. According to the most recent quarter report on (Jun 2020), 6 analysts estimated an average EPS of -0.3, while -0.33 EPS posted a year ago period. Analyst Estimated EPS for HMHC published in the report was -0.46–0.23 during the same period. Comparing with last year, the average estimated EPS was -0.33 which is higher than -2.77 which was posted for recent quarter EPS.

A brief look on simple moving average (SMA) that determines the market price can impact a market. The SMA for HMHC fall -53.63% for period of 200 days. SMA for 50 days was 29.39% which is showing green signal, while SMA-20 was 2.71%. The moving average value for Houghton Mifflin Harcourt Company (HMHC) is 3.7308 and 1.7207 for 200 and 50 days respectively.

Let’s take a look on the insider transactions, in which multiple shareholders are showing interest in HMHC stock. On May 11, Lynch John J Jr, President and CEO, sold 6,005 trading shares at the cost of $1.27, which valued at 7626.0.