One of the most dreaded feelings for an investor is when the stock they just bought is overvalued, or they missed out on an undervalued opportunity by not acting fast enough.

But what if you had the insights to effectively evaluate a company like Ebix Inc before investing? Investing requires a certain perspective to avoid being overly confident in a company or worried about cyclical changes. A smart way to take the guesswork out of knowing when to buy or sell Ebix Inc’s stock is to have the right tools and resources as well as a clear monitoring process.

In this article, we go over a few key elements for understanding Ebix Inc’s stock price such as:

• Current stock price and volume
• Stock price history
• Upgrades and downgrades from analysts
• Stock price momentum as measured by its relative strength

About Ebix Inc (EBIX)

Before we jump into Ebix Inc’s stock price, history, target price and what caused it to recently dip, let’s take a look at some background.

Ebix, Inc. is a provider of on-demand infrastructure software exchanges and e-commerce services to the insurance, financial, travel, cash remittance and healthcare industries. In the insurance sector, the Company?s main focus is to develop and deploy globally a variety of insurance and reinsurance exchanges on an on-demand basis using software-as-a-service (SaaS) enterprise solutions in the areas of customer relationship management (CRM), front-end and back-end systems, and outsourced administrative and risk compliance. The Company?s EbixCash Financial exchange portfolio of software and services consists of domestic and international money remittance, foreign exchange (Forex), travel, pre-paid gift cards, utility payments, and lending and wealth management in India and other primarily Southeast Asian markets. It operates India's airport Forex business, with operations in approximately 20 international airports, including Delhi, Mumbai, Hyderabad, Chennai and Kolkata.

Want to learn more about Ebix Inc’s stock? Click the button below to subscribe to A+ Investor and get access to everything you need to know about Ebix Inc. The AAII Stock Evaluator puts a company’s grades, charts, news, financials, valuation, ratios, filings and more at your fingertips.

What Caused Ebix Inc Stock’s Price to Dip?

Stock prices are primarily based on seller supply and buyer demand. But have you ever wondered about what other factors affect a stock's price?

One of the most common factors that can drastically impact a stock’s price is analyst upgrades and downgrades. When an analyst changes their opinion of a stock by upgrading or downgrading their rating, it often leads to a sudden stock price adjustment. As of July 31, 2023, there were 2 analysts who downgraded Ebix Inc’s stock and 0 analysts who upgraded over the last month.

Additionally, you'll want to evaluate Ebix Inc’s financial health and valuation. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others.

Therefore, AAII developed a composite valuation to help resolve such issues. AAII’s Value Grade analyzes six distinct variables: price-to-sales (P/S) ratio, price-earnings (P/E) ratio, the ratio of enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA), shareholder yield, price-to-book-value (P/B) ratio and price-to-free-cash-flow (P/FCF) ratio.

Ebix Inc’s current valuation based on AAII’s Value Grade is a B, which means it is considered to be Value.

Learn how to evaluate stocks with AAII Grades and Scores with A+ Investor today.

Lastly, news and media coverage as well as recent press reports about the company or its industry may cause stock prices to fluctuate. You can check out the most recent news articles about Ebix Inc (EBIX) by visiting AAII Stock Evaluator.

Relative Price Strength of Ebix Inc

Relative price strength addresses the relationship between a stock price’s trend and the price trend of the market. This ratio is expressed as a percentage and helps investors understand a company’s momentum as well as its value. You can use relative price strength to select investments that have been outperforming the market or a specific benchmark.

For AAII’s Momentum Grade, a weighted relative price strength is calculated. The weighted four-quarter relative price strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40%, and each of the three previous quarters are given a weighting of 20%.

As of July 31, 2023, Ebix Inc has a weighted four-quarter relative price strength of 22.62%, which translates to a Momentum Score of 95 and is considered to be Very Strong.

Want to learn more about how Ebix Inc is graded based on AAII’s composite scores for value, growth, quality and earnings estimate revisions? Subscribe to A+ Investor today.

Ebix Inc Stock Price: Bottom Line

As of August 1, 2023, Ebix Inc’s stock price is $29.49, which is down 4.75% from its previous closing price.

At AAII, we stress that investors should never buy or sell a stock solely based on its stock price. Past returns do not guarantee future performance. Therefore, you should consider multiple ratios, fundamentals and analytics before making a decision. Whether you decide it’s a good time to buy or sell Ebix Inc’s stock based on its stock price forecast is ultimately up to you.

It’s important to understand that stock prices are driven by a variety of factors, but ultimately the price at any given moment is due to the supply and demand in the market. Stock price overviews, like the one you just read, only give you a small snapshot of a company’s performance, value and momentum.

By becoming an A+ Investor subscriber, you will have full access to analytics, grades, stock screens, commentary and more so you can invest with confidence.