NEW YORK (TheStreet) -- Shares of ChyronHego (CHYR) closed up 9.5% to $2.77 in trading Monday.
The company's stock continues to surge following the announcement that is was launching its Virtual 1st technology for live football broadcasts.
"The system employs video overlay and sensorless camera technology to help broadcasters quickly analyze gameplay and provide greater insight to fans," said ChyronHego.
The television broadcast graphics provider plans on unveiling the new technology at the NAB entertainment and media show next week in Las Vegas.
TheStreet Ratings team rates CHYRONHEGO CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHYRONHEGO CORP (CHYR) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, CHYRONHEGO CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for CHYRONHEGO CORP is rather high; currently it is at 59.16%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CHYR's net profit margin of -25.55% significantly underperformed when compared to the industry average.
- This stock has increased by 48.10% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in CHYR do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- CHYRONHEGO CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CHYRONHEGO CORP continued to lose money by earning -$0.30 versus -$1.31 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$0.30).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 81.2% when compared to the same quarter one year prior, rising from -$20.02 million to -$3.76 million.
- You can view the full analysis from the report here: CHYR Ratings Report