Heavy Volume And Pre-Market Movement For LogMeIn (LOGM)

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 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 $8.4 million.
  • LOGM traded 21,118 shares today in the pre-market hours as of 8:38 AM, representing 10.4% of its average daily volume.

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More details on LOGM:

LogMeIn, Inc. provides various cloud-based services for remote access, device management, collaboration, data management, and customer care activities in the United States, the United Kingdom, and internationally. Currently there are 3 analysts that rate LogMeIn a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for LogMeIn has been 154,900 shares per day over the past 30 days. LogMeIn has a market cap of $772.9 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.03 and a short float of 6.4% with 6.28 days to cover. Shares are down 4.1% year-to-date as of the close of trading on Wednesday.

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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 solid stock price performance. 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:
  • LOGM's revenue growth has slightly outpaced the industry average of 16.7%. Since the same quarter one year prior, revenues rose by 21.5%. 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.
  • LOGM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, LOGM has a quick ratio of 2.10, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for LOGMEIN INC is currently very high, coming in at 93.51%. Regardless of LOGM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LOGM's net profit margin of -0.13% significantly underperformed when compared to the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, LOGMEIN INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $4.90 million or 17.67% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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