NEW YORK (TheStreet) -- Audiocodes (AUDC) was falling 6.43% to $8.44 at 11:22 a.m. on Wednesday after the company, which designs, develops and sells advanced Voice over IP and data networking products and communications applications for service providers and enterprises, announced the pricing of its public offering of ordinary shares.
The company set a price of $8 a share for the 3.5 million shares. William Blair and Needham acted as joint book running managers for the offering.
The stock had amassed a volume of more than 2.5 million at 11:20 a.m., well above its average of 391,543.
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TheStreet Ratings team rates AUDIOCODES LTD as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AUDIOCODES LTD (AUDC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AUDC's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although AUDC's debt-to-equity ratio of 0.14 is very low, it is currently higher than that of the industry average. To add to this, AUDC has a quick ratio of 2.23, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for AUDIOCODES LTD is rather high; currently it is at 59.61%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, AUDC's net profit margin of 7.64% significantly trails the industry average.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Communications Equipment industry and the overall market, AUDIOCODES LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Net operating cash flow has decreased to $5.57 million or 32.38% 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 analysis from the report here: AUDC Ratings Report