NEW YORK (TheStreet) -- Rubicon Technology (RBCN) - Get Rubicon Technology, Inc. Report fell 7.23% to $13.09 at 12:10 p.m. on Wednesday after the sapphire manufacturer priced 2.5 million shares of common stock in its public offering.
The company announced a price of $13 a share for the underwritten public offering, which it expects to close on Monday, March 24. Rubicon's offering contains a 30-day option to buy an additional 375,000 shares of common stock.
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TheStreet Ratings team rates RUBICON TECHNOLOGY INC as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate RUBICON TECHNOLOGY INC (RBCN) a SELL. This is driven by a number of negative factors, 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 company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 1247.6% when compared to the same quarter one year ago, falling from -$1.13 million to -$15.24 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 Semiconductors & Semiconductor Equipment industry and the overall market, RUBICON 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 $0.31 million or 78.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- RUBICON TECHNOLOGY 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 two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, RUBICON TECHNOLOGY INC reported poor results of -$1.34 versus -$0.25 in the prior year. This year, the market expects an improvement in earnings (-$0.49 versus -$1.34).
- The revenue fell significantly faster than the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 42.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: RBCN Ratings Report
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.