Zix stock: buy or sell?

ZIXI stock price: $7.81 -2.86% At close on January 17th, 2020

Updated on:
January 17th, 2020

0

Zix ended yesterday at $7.81 and dropped a terrifying -2.86%.

Zix Corporation provides email encryption, data loss prevention (DLP), and Bring-Your-Own-Device (BYOD) security solutions to the healthcare, financial services, insurance, and government sectors in the United States.

Should I buy Zix stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. 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 Zix 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 doesn't mean ZIXI will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Zix stock a buy?

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

Zix stock analysis

Daily outlook

Shares of Zix dropped a terrifying -2.86% and closed at $7.81.

Zix dropped a terrifying -2.86% and closed at $7.81. In this session, Zix stock crossed down the SMA200d line. If you are using SMA200d line as stop loss trigger, double check your position in this stock. From a daily perspective, ZIXI is in a short term uptrend after plotting its last bottom ($6.63, on December 30th) higher than the previous bottom, and its last top ($8.12, on January/16) also over the previous top. Now trading in between its last bottom and last top ZIXI might consolidate in a plain range, waiting to break out over $8.12 or down under $6.63.

ZIXI stock chart (daily)

Weekly outlook

After boosting a super good 11.40% in a week last week, Zix closed this week at $7.81 and appreciated a slightly fine 1.17%. Counting this, it's been 5 climbing weeks in a row, soaring a 16.93%. Early December ZIXI plunged a terrible -5.13% in just one week.

Since price and 40-weeks moving average lines crossed down by mid August 2019, ZIXI fell $-0.30 per share (-3.70%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support.

ZIXI stock chart (weekly)

Zix stock price history

Zix stock went public on November 9th, 1989 with a price of $0.001. Since then, ZIXI stock grew a inf%, with a yearly average of inf%. If you had invested right after ZIXI's IPO a $1,000 in Zix stock in 1989, it would worth $inf today.

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

Zix stock historical price chart

ZIXI stock reached 52-week highs on May at $11.15, and all-time highs 2000-03-28 with a price of 96.5.

Zix 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. 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 Zix stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Zix presented its financial report, posting an excellent climb for the Earnings per Share (EPS) ratio. Analyst were expecting $0.07 per share, but Zix posted $0.08.
ZIXI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.03n/a
2017-Q2-n/a0.02n/a
2017-Q32017-10-240.070.070.0%
2017-Q42018-02-220.04-0.02n/a
2018-Q12018-05-020.050.04-20.0%
2018-Q22018-07-310.040.03-25.0%
2018-Q32018-10-23n/a0.05n/a
2018-Q42019-02-280.070.0814.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Zix annual revenues jumped a remarkable 7.33% to $70.48 million USD from $65.66 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) skyrocketed a 34.18% to 21.91%.

ZIXI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$48 M-$10 M21.7%-
2014$50 M4.58%$4.10 M8.1%-60.74%
2015$55 M8.67%$5.02 M9.2%22.25%
2016$60 M9.93%$5.84 M9.7%16.37%
2017$66 M9.18%$-8.06 M-12.3%-238.03%
2018$70 M7.33%$15 M21.9%-291.68%

Quarterly financial results

Zix posted $18.45 M in sales for 2018-Q4, a 3.21% improvement compared to previous quarter. Reported quarter earnings marked $9.26 M with a profit margin of 50.17%. Profit margin rocketed a 36.44% compared to previous quarter when profit margin was 13.73%. When comparing sales to same quarter last year, Zix sales marked a brilliant growth and soared a 9.82%. Looking back to recent quarterly results, Zix posted 3 positive quarters in a row.
ZIXI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$16 M-$2 M11.2%-
2017-Q2$16 M3.08%$1 M7.0%-35.96%
2017-Q3$17 M1.28%$2 M11.5%67.54%
2017-Q4$17 M1.27%$-13 M-76.6%-774.14%
2018-Q1$17 M-0.87%$2 M11.4%-114.69%
2018-Q2$18 M5.08%$2 M10.5%-2.75%
2018-Q3$18 M2.15%$2 M13.7%33.42%
2018-Q4$18 M3.21%$9 M50.2%277.03%

Zix ownership

When you are planning to buy a stock, it's worth to review its ownership structure.

Zix shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 3.44% of all shares.

In case of Zix stock, 72.43% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ZIXI stock account 0.00%, no big difference from last month.

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

ZIXICTXSIBMMSFTPFPT
Market cap$435.3 M$15.3 B$122.5 B$1,286.7 B$7.0 B
Total shares55.7 M130.2 M885.6 M7,700.0 M56.5 M
Float shares48.4 M129.6 M884.4 M7,520.0 M55.6 M
  - Institutional holdings (%)72.4%100.8%58.6%74.5%100.2%
  - Insider holdings (%)3.4%0.9%0.1%1.4%2.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Zix summary

Friday, January 17th, 2020
Open$8.11
Close$7.81
Day range$7.66 - $8.11
Previous close$8.04
Session gain-2.86%
Average true range$0.28
50d mov avg$7.13
100d mov avg$7.13
200d mov avg$7.97
Daily patternlt06a
Weekly pattern

Zix performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Zix, the comparison is made against Citrix Systems, International Business Machines, Microsoft, Proofpoint, VirnetX and Vmware.
Stock3m6m12m
ZIXIZix21.84%-15.20%26.17%
CTXSCitrix Systems15.83%16.63%9.32%
IBMInternational Bus...4.37%-5.40%17.06%
MSFTMicrosoft22.02%23.14%57.43%
PFPTProofpoint3.20%-0.29%31.45%
VHCVirnetX-33.67%-43.22%-27.90%
VMWVmware-0.51%-15.68%2.51%

Zix competitors

One check before investing in any stock is to review a list of its competitors, in this case for Zix. We chose 6 companies as Zix competitors as they are in the same industry or have similar market objectives.