Perilous Reversal Stock: Imperva (IMPV)
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Imperva as such a stock due to the following factors:
- IMPV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.2 million.
- IMPV has traded 51,554 shares today.
- IMPV is down 3.6% today.
- IMPV was up 7.6% yesterday.
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More details on IMPV:
Imperva, Inc. engages in the development, market, sale, and support of cyber security solutions that protect business critical data and applications in the cloud or on premises worldwide. IMPV has a PE ratio of 335. Currently there are 13 analysts that rate Imperva a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Imperva has been 713,600 shares per day over the past 30 days. Imperva has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.87 and a short float of 8.3% with 2.18 days to cover. Shares are down 29.3% year-to-date as of the close of trading on Friday.
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Analysis:
rates Imperva as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Software industry average. The net income has decreased by 19.9% when compared to the same quarter one year ago, dropping from -$20.03 million to -$24.01 million.
- Net operating cash flow has decreased to $5.98 million or 12.08% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Looking at the price performance of IMPV's shares over the past 12 months, there is not much good news to report: the stock is down 33.05%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
- The gross profit margin for IMPERVA INC is currently very high, coming in at 80.49%. 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 -40.16% is in-line with the industry average.
- You can view the full Imperva Ratings Report.
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