Trade-Ideas LLC identified

LogMeIn

(

LOGM

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified LogMeIn as such a stock due to the following factors:

  • LOGM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.8 million.
  • LOGM traded 38,344 shares today in the pre-market hours as of 8:20 AM, representing 14.4% of its average daily volume.

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More details on LOGM:

LogMeIn, Inc. provides cloud-based services for individuals and businesses to securely connect to their workplace, colleagues, and customers. LOGM has a PE ratio of 106. Currently there are 4 analysts that rate LogMeIn a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for LogMeIn has been 254,600 shares per day over the past 30 days. LogMeIn has a market cap of $1.6 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.35 and a short float of 9.3% with 6.40 days to cover. Shares are down 2.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates LogMeIn as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

  • LOGM's revenue growth has slightly outpaced the industry average of 20.5%. Since the same quarter one year prior, revenues rose by 30.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Although LOGM's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
  • LOGMEIN 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. 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, LOGMEIN INC increased its bottom line by earning $0.56 versus $0.31 in the prior year. This year, the market expects an improvement in earnings ($1.88 versus $0.56).
  • Net operating cash flow has declined marginally to $38.00 million or 4.94% 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.
  • The share price of LOGMEIN INC has not done very well: it is down 5.04% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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