Instructure stock: buy or sell?

INST stock price: $49.00 0.43% At close on March 23rd, 2020

Updated on:
March 23rd, 2020

4

After crossing up the simple moving average line of 100d yesterday, Instructure closed at $49.00, appreciated a 0.43%. March/23 was the 3rd climbing session in a row, soaring 2.28%.

Instructure, Inc., a software-as-a-service technology company, provides applications for learning, assessment, and performance management worldwide.

Should I buy Instructure stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we 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 Instructure stock situation right now, hence 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 Instructure stock a buy?

Financial institutions and banks publish stock ratings everyday. Unfortunately, we couldn't find any rating for INST stock for the last 30 days.

Instructure stock analysis

Daily outlook

After breaking up the simple moving average line of 100d yesterday, Instructure shares closed today at $49.00.

After breaking up the SMA line of 100 days yesterday, Instructure shares closed at $49.00. Since December when SMA100d and SMA200d crossed up, INST price gained $1.00 per share (2.08%). On November, INST hit new all time highs, pushing higher previous ATH of $53.95 recorded on November. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

INST stock chart (daily)

Weekly outlook

Shares of Instructure remained stable a slightly fine 0.43% this week.

Weekly chart tells us that price finally broke over the resistance at $48.95 and continued climbing. Far behind is the all-time high Instructure marked by mid November 2019 but price is just -9.78% below that top. Since early December 2019 when SMA20w and SMA40w crossed up, INST price slipped $-0.12 per share (-0.24%). Since price and SMA40w lines crossed up by mid October 2019, INST climbed $7.52 (18.13%).

INST stock chart (weekly)

Instructure stock price history

Instructure IPO was on November 13th, 2015 at $16.00 per share1. Since then, INST stock grew a 206.30%, with an average of 51.60% per year. If you had invested right after INST's IPO a $1,000 in Instructure stock in 2015, it would worth $2,063.00 today.

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

Instructure stock historical price chart

INST stock reached all-time highs on November with a price of $54.31.

Instructure stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we have not detected any price target for Instructure stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Instructure let down experts when it published an Earnings per Share (EPS) of $-0.20 when the analysts' forecast was $-0.32.
INST earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a-0.45n/a
2017-Q32017-10-30-0.31-0.27n/a
2017-Q42018-02-12-0.43-0.4n/a
2018-Q12018-04-30-0.39-0.36n/a
2018-Q22018-07-30-0.43-0.4n/a
2018-Q32018-10-29-0.41-0.31n/a
2018-Q42019-02-19-0.32-0.2n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Instructure annual sales boosted an extraordinary 30.17% to $209.54 million USD from $160.98 marked in 2017. On the other hand, its earnings margin (compared to revenues) escalated to -20.74%, that is $-43.47 million.

INST annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$26 M-$-22.50 M-86.3%-
2014$44 M70.19%$-41.43 M-93.4%84.12%
2015$73 M65.03%$-52.98 M-72.4%27.88%
2016$111 M51.49%$-53.57 M-48.3%1.11%
2017$161 M45.18%$-43.08 M-26.8%-19.57%
2018$210 M30.17%$-43.47 M-20.7%0.88%

Quarterly financial results

Instructure posted $56.25 M in sales for 2018-Q4, a 1.83% improvement compared to previous quarter. Reported quarter income marked $-7.59 million with a profit margin of -13.49%. Profit margin jumped a 7.28% compared to previous quarter when profit margin was -20.77%. When comparing turnover to same quarter last year, Instructure sales marked an amazing growth and climbed a 32.09%. Looking back to recent quarterly results, Instructure posted 4 negative quarters in a row.
INST quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$38 M-$-13.00 M-34.2%-
2017-Q3$43 M12.90%$-12.37 M-28.8%-4.82%
2017-Q4$43 M-0.84%$-16.48 M-38.7%33.21%
2018-Q1$48 M12.69%$-11.87 M-24.7%-27.99%
2018-Q2$50 M4.32%$-12.54 M-25.0%5.65%
2018-Q3$55 M10.34%$-11.47 M-20.8%-8.50%
2018-Q4$56 M1.83%$-7.59 M-13.5%-33.87%
2019-Q1$58 M3.24%$-16.14 M-27.8%112.76%

Instructure ownership

When you are planning to invest in shares of a stock, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Instructure, 2.41% of all outstanding shares are owned by its staff.

Bearish positions for INST stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Instructure:

INST
Market cap$1.9 B
Total shares38.3 M
Float shares34.5 M
  - Institutional holdings (%)87.6%
  - Insider holdings (%)2.4%
Shares in short selling0.0%

Instructure summary

Monday, March 23rd, 2020
Open$49.06
Close$49.00
Day range$48.99 - $49.65
Previous close$48.79
Session gain0.43%
Average true range$0.56
50d mov avg$48.24
100d mov avg$48.74
200d mov avg$44.80
Daily pattern
Weekly pattern lb01c

Instructure performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Instructure against in the following table:
Stock3m6m12m
INSTInstructure1.20%26.68%3.99%

Instructure competitors

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