Why Image Sensing Systems (ISNS) Stock Hit a One-Year High Today

NEW YORK (TheStreet) -- Image Sensing Systems  (ISNS) shares hit a 52-week high of $9.94 on Wednesday as the company continued to receive significant attention after the events in Ferguson, MO.

Image Sensing Systems develops image processing products for advanced traffic management systems and traffic data collection. The company has garnered interest following a police officer's fatal shooting of an unarmed black teenager in Ferguson.

The shooting sparked weeks of protests and civil unrest. More than 147,000 citizens have signed a White House petition to demand legislation that would require state, county and local police to wear cameras while on duty.

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More than 19.7 million shares had changed hands as of 11:47 a.m., which dwarfed the average volume of 766,100.

Separately, TheStreet Ratings team rates IMAGE SENSING SYSTEMS INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate IMAGE SENSING SYSTEMS INC (ISNS) a SELL. This is driven by a number of negative factors, 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. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself."

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

  • 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 Electronic Equipment, Instruments & Components industry and the overall market, IMAGE SENSING SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ISNS'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 46.16%, 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.
  • ISNS, with its decline in revenue, underperformed when compared the industry average of 3.5%. Since the same quarter one year prior, revenues fell by 20.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • IMAGE SENSING SYSTEMS INC has improved earnings per share by 11.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IMAGE SENSING SYSTEMS INC reported poor results of -$3.21 versus -$0.69 in the prior year. This year, the market expects an improvement in earnings (-$1.12 versus -$3.21).
  • The gross profit margin for IMAGE SENSING SYSTEMS INC is currently very high, coming in at 74.23%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -25.81% is in-line with the industry average.
  • You can view the full analysis from the report here: ISNS Ratings Report

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Image Sensing Systems (ISNS) Strong On High Relative Volume Today

Image Sensing Systems (ISNS) Strong On High Relative Volume Today

Image Sensing Systems (ISNS) Weak On High Volume Today

Image Sensing Systems (ISNS) Weak On High Volume Today

Today's Dead Cat Bounce Stock: Image Sensing Systems (ISNS)

Today's Dead Cat Bounce Stock: Image Sensing Systems (ISNS)

Strong On High Relative Volume: Image Sensing Systems (ISNS)

Strong On High Relative Volume: Image Sensing Systems (ISNS)