Imperva (IMPV) Moving On Heavy Pre-Market Trading

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 Imperva ( IMPV) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Imperva as such a stock due to the following factors:

  • IMPV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.2 million.
  • IMPV traded 45,185 shares today in the pre-market hours as of 7:56 AM, representing 10.9% of its average daily volume.

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More details on IMPV:

Imperva, Inc. develops, markets, sells, services, and supports data center security solutions that protect high value applications and data assets in physical and virtual data centers. The company operates in two segments, Imperva and Incapsula. Currently there are 7 analysts that rate Imperva a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Imperva has been 294,600 shares per day over the past 30 days. Imperva has a market cap of $1.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.83 and a short float of 4.1% with 2.18 days to cover. Shares are up 2.5% year-to-date as of the close of trading on Tuesday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Imperva as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 Software industry. The net income has significantly decreased by 1202.3% when compared to the same quarter one year ago, falling from -$0.72 million to -$9.43 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 Software industry and the overall market, IMPERVA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • IMPERVA 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, IMPERVA INC reported poor results of -$1.02 versus -$0.33 in the prior year. This year, the market expects an improvement in earnings (-$0.81 versus -$1.02).
  • The gross profit margin for IMPERVA INC is currently very high, coming in at 81.60%. Regardless of IMPV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IMPV's net profit margin of -22.06% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly increased by 2215.33% to $7.55 million when compared to the same quarter last year. In addition, IMPERVA INC has also vastly surpassed the industry average cash flow growth rate of -5.52%.

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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