NEW YORK (TheStreet) -- Shares of security technology company Identiv (INVE) plunged 20.09% to $15.63 in morning trading Thursday after it priced its offering of 2 million shares of common stock at $15 a share for a total of $30 million.
The company expects the offering to close on September 16 and expects to receive approximately $27.3 million in net proceeds. The company said it plans to use the proceeds for "working capital and other general corporate purposes" such as acquisitions and investments.
The offering contains a 30-day option for underwriters to purchase up to an additional 300,000 shares.
More than 1.1 million shares had changed hands as of 11:50 a.m., compared to the average volume of 106,283.
Separately, TheStreet Ratings team rates IDENTIV INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate IDENTIV INC (INVE) a SELL. This is driven by some concerns, 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 weak operating cash flow."
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, IDENTIV INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to -$2.56 million or 15.99% when compared to the same quarter last year. Despite a decrease in cash flow of 15.99%, IDENTIV INC is in line with the industry average cash flow growth rate of -20.62%.
- 41.68% is the gross profit margin for IDENTIV INC which we consider to be strong. Regardless of INVE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, INVE's net profit margin of -11.73% significantly underperformed when compared to the industry average.
- IDENTIV INC's earnings per share declined by 13.3% 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, IDENTIV INC continued to lose money by earning -$3.40 versus -$8.40 in the prior year.
- INVE's debt-to-equity ratio of 0.63 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.31 is sturdy.
- You can view the full analysis from the report here: INVE Ratings Report
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