Imperva (IMPV) Stock Will Continue Yearlong Uptrend

Our optimistic upside target is the round number of $100.
By Bruce Kamich ,

NEW YORK (TheStreet) -- Imperva (IMPV) - Get Report is breaking out. Time to go long and add to existing longs.

Things are up and away in this chart of IMPV, above. We can see a yearlong uptrend, a rising On-Balance-Volume (OBV) line, bullish moving averages and a positive Moving Average Convergence Divergence (MACD) oscillator.

This longer-term chart, above, is also bullish for IMPV. Note the positive OBV line and the MACD oscillator about to give another bullish crossover. A new high of $76 could start a faster advance. Our optimistic upside target is the round number of $100.

TheStreet Ratings team rates IMPERVA INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate IMPERVA INC (IMPV) a SELL. This is driven by a few notable 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 Software industry and the overall market, IMPERVA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • IMPERVA 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, IMPERVA INC reported poor results of -$2.29 versus -$1.02 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus -$2.29).
  • The gross profit margin for IMPERVA INC is currently very high, coming in at 83.05%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -9.07% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 314.02% to $10.54 million when compared to the same quarter last year. In addition, IMPERVA INC has also vastly surpassed the industry average cash flow growth rate of -10.48%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 57.8% when compared to the same quarter one year prior, rising from -$13.62 million to -$5.75 million.
  • You can view the full analysis from the report here: IMPV

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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