NEW YORK (TheStreet) -- CYS Investments
(CYS - Get Report) shares are down -1.7% to $9.23 in pre-market trading on Wednesday after being downgraded to "hold" from "buy" by analysts at Maxim Group who also removed the company's $10 price target.
The financial services company previously reported second quarter earnings of 33 cents per diluted share, in line with analysts expectations, on revenue of 44.9 million that was also in line with guidance.
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TheStreet Ratings team rates CYS INVESTMENTS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:"We rate CYS INVESTMENTS INC (CYS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we find that the company's revenue growth has not been good." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 139.8% when compared to the same quarter one year prior, rising from -$398.29 million to $158.38 million.
- CYS INVESTMENTS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CYS INVESTMENTS INC swung to a loss, reporting -$2.87 versus $2.75 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus -$2.87).
- CYS, with its decline in revenue, underperformed when compared the industry average of 10.6%. Since the same quarter one year prior, revenues fell by 11.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CYS INVESTMENTS INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: CYS Ratings Report