MoSys, Inc. (MOSY): Charged Up Insiders Buy Shares

MoSys, Inc. (NASDAQ:MOSY) has been downgraded by The Benchmark Company on April 13 which now rates the stock as Hold compared with Speculative Buy rating suggested in the past. Analysts at The Benchmark Company, maintained the company shares at Speculative Buy on November 04 but switched target price from $3 to $2. Brokerage firm ROTH Capital, looks cautious as they stick to prior recommendation of Buy, in a call on November 05. However, they did change the target price from $5 to $4.

MoSys, Inc. (MOSY) hit an intraday high Thursday at $0.21. The shares finished at $0.19, after trading as low as $0.15 earlier in the session. It dropped -11.12% in recent trade and currently has a stock-market value of $8.36M. Trading activity significantly improved as the volume at ready counter increased to 3,120,800 shares versus 2,260,045 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,393,577 shares. The stock is now -5% above against its bear-market low of $0.2 on December 06, 2018. It has retreated -1073.68% since it’s 52-week high of $2.23 reached in May. Now the market price is down -83.17% on the year and down -82.86% YTD.

MOSY’s 50 day simple moving average (SMA 50) price is $0.28 and its 200-day simple moving average (SMA 200) price is $1.11. The company’s stock currently has a total float of 41.4M shares. Its weekly volatility is hovering around 13.76% and felt 11.58% volatility in price over a month. On the upside, the share price will test short term resistance at around $0.22. On a downside, the stock is likely to find some support, which begins at $0.16. The failure to get near-term support could push it to $0.12.

Separately, it has been reported that multiple insider activity took place at MoSys, Inc. (MOSY). Director Newell Robert Y Iv acquired 50,000 shares for $60,000 in transaction occurred on 2018/12/03. After making this transaction, the Director owns a direct stake of 11,000 shares, worth $11,400, as per the last closing price. On 2016/06/15 Perham Leonard Charles, President and CEO at MOSY, purchased 1,490 shares at an average price of $3.8 per share. The new stake is valued at $33,602.

Director, Eng Tommy had divested 2,000 shares through a trade on 2015/06/08. Following this activity, the insider holds 43,800 shares. Wall Street’s most bullish MoSys, Inc. (NASDAQ:MOSY) analysts are predicting the share price to blow past $1 per share during the next 12 months. The current median share price forecast by them is $1, suggesting that the stock could increase 426.32% in that time frame. The average price target of $1 calls for a nearly 426.32% increase in the stock price.

Moreover, it trades for 6.34 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.27x price/book and 0.49x price/sales. Compared to others, MoSys, Inc. is in a different league with regards to profitability, having net margins of -15.8%. To put some perspective around this, the industry’s average net margin is 21.22%. MOSY’s ROE is -36.2%, which is also considerably worse than the industry’s ROE of 9.21%. It’s also very liquid in the near term, with a current ratio of 2.4. The stock has a debt/capital of 0.

Shares of MoSys, Inc. (MOSY) have dropped -32.3% since the company’s last earnings report. Over the past 2 fiscal quarters, MoSys, Inc. (NASDAQ:MOSY) has topped consensus earnings estimates in 0 quarters (0%), missed earnings in 0 quarters (0%), whereas at 2 occasion EPS met analyst expectations. Revenue for the recent quarter stood at $4.34 million, up 77% on last year and above the $4.14 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.35 million to $3.35 million, which should be compared with $5.07 million generated last year. EPS is seen in a range of -$0.06 to -$0.06, against the -$0.04 reported a year ago.