Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Demandware as such a stock due to the following factors:
- DWRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.9 million.
- DWRE traded 53,720 shares today in the pre-market hours as of 8:14 AM, representing 14.1% of its average daily volume.
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More details on DWRE:
Demandware, Inc. provides software-as-a-service e-commerce solutions that enable companies to design, implement, and manage their own customized e-commerce sites, including Websites, mobile applications, and other digital storefronts. Currently there are 6 analysts that rate Demandware a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Demandware has been 310,400 shares per day over the past 30 days. Demandware has a market cap of $2.0 billion and is part of the technology sector and computer software & services industry. Shares are up 132.8% year to date as of the close of trading on Monday.
rates Demandware as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 80.3% when compared to the same quarter one year ago, falling from -$3.47 million to -$6.26 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, DEMANDWARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- DEMANDWARE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, DEMANDWARE INC swung to a loss, reporting -$0.29 versus $0.02 in the prior year. This year, the market expects an improvement in earnings (-$0.23 versus -$0.29).
- The gross profit margin for DEMANDWARE INC is currently very high, coming in at 75.68%. 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 -25.56% is in-line with the industry average.
- Net operating cash flow has significantly increased by 774.93% to $2.45 million when compared to the same quarter last year. In addition, DEMANDWARE INC has also vastly surpassed the industry average cash flow growth rate of 23.77%.
- You can view the full Demandware Ratings Report.