How to buy NIC stock - 06 March

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How to buy NIC stock

Own NIC stock in just a few minutes.

Fact checked

NIC Inc is a software-application business based in the US. NIC shares (EGOV) are listed on the NASDAQ and all prices are listed in US Dollars. NIC employs 1,025 staff and has a trailing 12-month revenue of around USD$460.5 million.

How to buy shares in NIC

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for NIC. Find the stock by name or ticker symbol: EGOV. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until NIC reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of NIC, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of NIC. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

NIC share price

Use our graph to track the performance of EGOV stocks over time.

NIC shares at a glance

Information last updated 2021-03-03.
52-week rangeUSD$15.2704 - USD$35.2575
50-day moving average USD$30.9141
200-day moving average USD$24.7983
Wall St. target priceUSD$30.67
PE ratio 34.2426
Dividend yield USD$0.36 (1.04%)
Earnings per share (TTM) USD$1.01

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy NIC stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is NIC under- or over-valued?

Valuing NIC stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of NIC's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

NIC's P/E ratio

NIC's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 34x. In other words, NIC shares trade at around 34x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

NIC's PEG ratio

NIC's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.36. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into NIC's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

NIC's EBITDA

NIC's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$101.7 million.

The EBITDA is a measure of a NIC's overall financial performance and is widely used to measure a its profitability.

NIC financials

Revenue TTM USD$460.5 million
Operating margin TTM 18.99%
Gross profit TTM USD$165.7 million
Return on assets TTM 13.22%
Return on equity TTM 25.45%
Profit margin 14.9%
Book value $4.373
Market capitalisation USD$2.3 billion

TTM: trailing 12 months

Shorting NIC shares

There are currently 1.1 million NIC shares held short by investors – that's known as NIC's "short interest". This figure is 15% down from 1.3 million last month.

There are a few different ways that this level of interest in shorting NIC shares can be evaluated.

NIC's "short interest ratio" (SIR)

NIC's "short interest ratio" (SIR) is the quantity of NIC shares currently shorted divided by the average quantity of NIC shares traded daily (recently around 855982.94573643). NIC's SIR currently stands at 1.29. In other words for every 100,000 NIC shares traded daily on the market, roughly 1290 shares are currently held short.

However NIC's short interest can also be evaluated against the total number of NIC shares, or, against the total number of tradable NIC shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case NIC's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 NIC shares in existence, roughly 20 shares are currently held short) or 0.0229% of the tradable shares (for every 100,000 tradable NIC shares, roughly 23 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against NIC.

Find out more about how you can short NIC stock.

NIC share dividends

36%

Dividend payout ratio: 35.64% of net profits

Recently NIC has paid out, on average, around 35.64% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.05% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), NIC shareholders could enjoy a 1.05% return on their shares, in the form of dividend payments. In NIC's case, that would currently equate to about $0.36 per share.

While NIC's payout ratio might seem fairly standard, it's worth remembering that NIC may be investing much of the rest of its net profits in future growth.

NIC's most recent dividend payout was on 17 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 2 March 2021 (the "ex-dividend date").

NIC share price volatility

Over the last 12 months, NIC's shares have ranged in value from as little as $15.2704 up to $35.2575. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while NIC's is 0.2636. This would suggest that NIC's shares are less volatile than average (for this exchange).

NIC overview

NIC Inc., together with its subsidiaries, provides digital government services and payment solutions that enable governments to use technology to provide various services to businesses and citizens in the United States. The company operates through three segments: State Enterprise, Payments, and TourHealth. Its digital government services consist websites and applications that enable businesses and citizens to access government information through online channels, such as applying for a permit, retrieving government records, filing a government-mandated form or report, and making digital payments. The company's service offerings include business registrations and renewals; court services; driver's license renewal; health professional license services; hunting and fishing licenses; income and property tax payments; limited criminal history searches; motor vehicle driver history record retrieval; motor vehicle inspections; payment processing; prescription drug monitoring; professional license renewal; secretary of state business searches; temporary vehicle tags; uniform commercial code searches and filings; vehicle title, lien, and registration; and vital records. Its software & services business provides SaaS solutions relating to payment processing, healthcare and licensing, COVID-19 testing solutions, software development, and other digital government services under state enterprise contracts to federal, state, and local governments. In addition, the company develops and manages the pre-employment screening program for motor carriers using transaction-based business model. NIC Inc. was founded in 1992 and is headquartered in Olathe, Kansas.

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