Acme Packet Inc. (APKT): Today's Featured Technology Laggard

Acme Packet ( APKT) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.9%. By the end of trading, Acme Packet fell $1.14 (-6.6%) to $16.19 on heavy volume. Throughout the day, 5.5 million shares of Acme Packet exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $16.18-$17.88 after having opened the day at $17.85 as compared to the previous trading day's close of $17.33. Other company's within the Technology sector that declined today were: Zynga Inc Class A ( ZNGA), down 37.5%, Innodata ( INOD), down 32.9%, Quality Systems ( QSII), down 32.5%, and Synacor ( SYNC), down 29.6%.

Acme Packet, Inc. provides session delivery network solutions that enable the delivery of voice, video, data, and unified communications services and applications across Internet protocol (IP) networks. Acme Packet has a market cap of $1.11 billion and is part of the telecommunications industry. The company has a P/E ratio of 34.6, equal to the average telecommunications industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 43.9% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Acme Packet a buy, one analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates Acme Packet as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

On the positive front, MetroPCS Communications ( PCS), up 36.8%, Akamai Technologies ( AKAM), up 24%, Vasco Data Security International ( VDSI), up 23.5%, and Western Digital Corporation ( WDC), up 20.9%, were all gainers within the technology sector with Crown Castle International ( CCI) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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