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 post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Riverbed Technology as such a stock due to the following factors:
- RVBD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.1 million.
- RVBD is down 3.4% today from today's close.
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More details on RVBD:
Riverbed Technology, Inc. provides solutions to the fundamental problems associated with information technology (IT) performance across wide area networks (WANs) in the United States and internationally. Currently there are 5 analysts that rate Riverbed Technology a buy, 1 analyst rates it a sell, and 20 rate it a hold.
The average volume for Riverbed Technology has been 3.2 million shares per day over the past 30 days. Riverbed Technology has a market cap of $3.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.41 and a short float of 6.1% with 2.87 days to cover. Shares are up 9.8% year-to-date as of the close of trading on Wednesday.
rates Riverbed Technology as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 23.6%. Since the same quarter one year prior, revenues rose by 19.7%. 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.
- The gross profit margin for RIVERBED TECHNOLOGY INC is currently very high, coming in at 85.09%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, RVBD's net profit margin of 1.45% significantly trails the industry average.
- Despite currently having a low debt-to-equity ratio of 0.60, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that RVBD's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.59 is high and demonstrates strong liquidity.
- 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 Communications Equipment industry and the overall market, RIVERBED TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $47.82 million or 65.82% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Riverbed Technology Ratings Report.