CPAH stock: buy or sell?

CPAH stock price: $2.42 -2.42% At close on February 21st, 2020

Updated on:
February 21st, 2020

2

After boosting an outstanding 10.48% yesterday, CounterPath closed today at $2.42 and eased a fateful -2.42%. On Feb/19 CPAH plummed a chilling -6.31%.

CounterPath Corporation designs, develops, markets, and sells software applications and related services in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

Should I buy CPAH stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with CounterPath stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is CounterPath stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for CPAH stock for the last 30 days.

CPAH stock analysis

Daily outlook

After boosting an outstanding 10.48% yesterday, CounterPath closed today at $2.42 and eased a fateful -2.42%.

After boosting an outstanding 10.48% yesterday, CounterPath closed today at $2.42 and eased a fateful -2.42%. Since yesterday when SMA100d and SMA200d crossed up, CPAH price gained $0.20 per share (9.01%). Since price and SMA200d lines crossed up on Jan 10th, CPAH climbed $1.43 (144.44%).

CPAH stock chart (daily)

Weekly outlook

After boosting an amazing 8.61% in a week last week, CounterPath closed this week at $2.42 and slightly fell an unpleasant -0.82%. Late January CPAH plunged a spooky -26.32% in just one week.

Having descending tops is not good news for investors in CPAH. Although it's only a warning signal, traders should be on alert during next weeks to identify possible new risks. Sliding under its previous bottom at would confirm the downtrend path. Since SMA20d and SMA40w crossed up early February, CPAH price climbed $0.29 per share (13.62%). Since price and SMA40w lines crossed up early January, CPAH climbed $1.44 (146.94%).

CPAH stock chart (weekly)

CPAH stock price history

CPAH IPO was on April 7th, 2004 at $0.90 per share1. Since then, CPAH stock surged a 168.90%, with an average of 11.30% per year. If you had invested $1,000 in CPAH stock in 2004, it would worth $1,689.00 today.

1: Adjusted price after possible price splits or reverse-splits.

CPAH stock historical price chart

CPAH stock reached 52-week highs on Jan/13 at $6.00, and all-time highs 2004-09-20 with a price of 147.

CPAH stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price forecast for CounterPath stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since March, when CounterPath presented its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will extend this report.
CPAH earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a-0.17n/a
2017-Q3-n/a-0.23n/a
2017-Q4-n/a0.03n/a
2018-Q12018-04-30n/an/an/a
2018-Q22018-07-25n/a-0.3n/a
2018-Q32018-11-01n/an/an/a
2018-Q42019-02-06n/an/an/a
2019-Q12019-03-26n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, CounterPath annual sales remained stable a neutral 0.01% to $12.38 M USD from $12.38 marked in 2018. When comparing 2018 vs 2018, aligned with this, profit margin (that is, the net income divided by revenues) stayed constant a 0.00% to -26.01%.

To have an up to date view of the financial situation of CounterPath, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual CounterPath TTM sales up to January 2019 were $10.69 and earnings were $-5.58 M dollars. If we compare this TTM figures with the last reported annuality, we can review CounterPath business evolution since April 2018: Annual revenues up to January, compared to lastest yearly report, collapsed a bloodcurdling -13.65%. Likewise, profit margin (net income/revenues) plunged at -26.01%.

CPAH annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$12 M-$-5.91 M-50.6%-
2014$12 M0.00%$-5.91 M-50.6%0.00%
2015$12 M2.74%$-4.44 M-37.0%-24.87%
2015$12 M0.03%$-4.44 M-37.0%0.04%
2016$11 M-7.69%$-2.69 M-24.3%-39.44%
2016$11 M0.01%$-2.69 M-24.3%0.06%
2017$11 M-3.53%$-2.46 M-23.0%-8.60%
2017$11 M-0.04%$-2.46 M-23.0%-0.06%
2018$12 M15.86%$-3.22 M-26.0%30.97%
2018$12 M0.01%$-3.22 M-26.0%0.02%
TTM $11 M-13.65%$-5.58 M-52.2%73.34%

Quarterly financial results

CounterPath posted $2.59 M in sales for 2019-Q1, a 6.00% up compared to previous quarter. Reported quarter earnings marked $-1.06 M with a profit margin of -40.94%. Profit margin skyrocketed a 43.60% compared to previous quarter when profit margin was -84.54%. When comparing turnover to same quarter last year, CounterPath sales marked a spooky slide and plunged a -16.09%.
CPAH quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$2 M-$-0.85 M-36.1%-
2017-Q3$3 M32.34%$-1.15 M-37.0%35.54%
2017-Q4$3 M9.66%$0.16 M4.7%-113.81%
2018-Q1$3 M-9.58%$-0.78 M-25.2%-590.04%
2018-Q2$3 M-10.03%$-1.45 M-52.2%86.12%
2018-Q3$3 M4.09%$-1.01 M-35.0%-30.21%
2018-Q4$2 M-15.46%$-2.06 M-84.5%104.14%
2019-Q1$3 M6.00%$-1.06 M-40.9%-48.67%

CounterPath ownership

When you are planning to invest in a company, it's always worth to check its ownership structure.

CounterPath shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 51.51% of all shares.

In case of CounterPath stock, 1.66% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for CPAH stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

CPAH
Market cap$14.4 M
Total shares6.0 M
Float shares3.0 M
  - Institutional holdings (%)1.7%
  - Insider holdings (%)51.5%
Shares in short selling0.0%

CPAH summary

Friday, February 21st, 2020
Open$2.54
Close$2.42
Day range$2.34 - $2.45
Previous close$2.48
Session gain-2.42%
Average true range$0.29
50d mov avg$1.80
100d mov avg$1.46
200d mov avg$1.45
Daily pattern
Weekly pattern lt01a

CounterPath performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare CounterPath performance to :
Stock3m6m12m
CPAHCounterPath124.07%110.43%49.38%

CounterPath competitors

Unfortunately, we could not find any public company that could be defined as CounterPath competitor. This doesn't mean CounterPath does not have any competitor in the market, it's just we could not detected it.