Mattersight (MATR) Surges to One-year High on Heavy Volume

NEW YORK (TheStreet) -- Mattersight  (MATR) surged to a one-year high of $9.40 as of 11:45 a.m. on Monday on higher-than-average volume.

The stock had amassed a volume of more than 2 million before noon, more than 37 times its average of 54,412. The stock hit a low of $7.35 for the day and holds a one-year low of $2.65.

Mattersight, which provides enterprise analytics for customer-employee interactions, soared more than 20% on Monday morning. The company appointed Richard Dresden as its new Executive Vice President of Sales on Feb. 25.

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TheStreet Ratings team rates MATTERSIGHT CORP as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MATTERSIGHT CORP (MATR) a SELL. This is driven by a few notable weaknesses, 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. Among the areas we feel are negative, one of the most important has been weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly decreased to -$1.51 million or 285.59% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the IT Services industry and the overall market, MATTERSIGHT CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MATTERSIGHT CORP is currently very high, coming in at 74.35%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -16.55% is in-line with the industry average.
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 25.21%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Regarding the future course of this stock, we feel that the risks involved in investing in MATR do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • MATTERSIGHT CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MATTERSIGHT CORP continued to lose money by earning -$0.71 versus -$1.00 in the prior year. This year, the market expects an improvement in earnings (-$0.62 versus -$0.71).
  • You can view the full analysis from the report here: MATR Ratings Report

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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.

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