- ADAT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 34.43%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- 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 Health Care Technology industry and the overall market, AUTHENTIDATE HOLDING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- AUTHENTIDATE HOLDING CORP has improved earnings per share by 36.4% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AUTHENTIDATE HOLDING CORP reported poor results of -$0.45 versus -$0.36 in the prior year.
- 35.52% is the gross profit margin for AUTHENTIDATE HOLDING CORP which we consider to be strong. 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 -107.93% is in-line with the industry average.
- Net operating cash flow has increased to -$0.89 million or 41.27% when compared to the same quarter last year. In addition, AUTHENTIDATE HOLDING CORP has also vastly surpassed the industry average cash flow growth rate of -30.98%.
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. The Computer Software & Services industry as a whole closed the day down 0.4% versus the S&P 500, which was up 0.1%. Laggards within the Computer Software & Services industry included CounterPath ( CPAH), down 4.6%, TigerLogic ( TIGR), down 6.2%, Kingtone Wirelessinfo Solution ( KONE), down 2.2%, PAR Technology ( PAR), down 2.4% and Authentidate ( ADAT), down 5.0%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Authentidate ( ADAT) is one of the companies that pushed the Computer Software & Services industry lower today. Authentidate was down $0.04 (5.0%) to $0.75 on average volume. Throughout the day, 149,357 shares of Authentidate exchanged hands as compared to its average daily volume of 102,500 shares. The stock ranged in price between $0.74-$0.79 after having opened the day at $0.79 as compared to the previous trading day's close of $0.79. Authentidate Holding Corp. provides Web-based software applications, and telehealth products and services in the United States. Authentidate has a market cap of $30.5 million and is part of the technology sector. Shares are down 40.7% 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. TheStreet Ratings rates Authentidate as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on ADAT go as follows: