3 Stocks Pushing The Technology Sector Lower

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The Technology sector as a whole closed the day up 0.3% versus the S&P 500, which was up 0.1%. Laggards within the Technology sector included Sajan ( SAJA), down 2.8%, GRAVITY ( GRVY), down 3.3%, BluePhoenix Solutions ( BPHX), down 3.2%, Internet Gold Golden Lines ( IGLD), down 3.1% and Aetrium ( ATRM), down 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

Internet Gold Golden Lines ( IGLD) is one of the companies that pushed the Technology sector lower today. Internet Gold Golden Lines was down $0.30 (3.1%) to $9.40 on average volume. Throughout the day, 4,081 shares of Internet Gold Golden Lines exchanged hands as compared to its average daily volume of 3,600 shares. The stock ranged in price between $9.38-$9.43 after having opened the day at $9.41 as compared to the previous trading day's close of $9.70.

Internet Gold Golden Lines has a market cap of $185.1 million and is part of the telecommunications industry. Shares are up 13.3% year-to-date as of the close of trading on Wednesday.

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At the close, BluePhoenix Solutions ( BPHX) was down $0.12 (3.2%) to $3.65 on light volume. Throughout the day, 450 shares of BluePhoenix Solutions exchanged hands as compared to its average daily volume of 6,300 shares. The stock ranged in price between $3.65-$3.65 after having opened the day at $3.65 as compared to the previous trading day's close of $3.77.

BluePhoenix Solutions Ltd. develops and markets enterprise legacy lifecycle information technology (IT) modernization solutions worldwide. BluePhoenix Solutions has a market cap of $42.1 million and is part of the telecommunications industry. Shares are down 18.0% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates BluePhoenix Solutions as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on BPHX go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 0.4% when compared to the same quarter one year prior, going from -$0.76 million to -$0.75 million.
  • BPHX's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
  • BLUEPHOENIX SOLUTIONS LTD reported flat earnings per share in the most recent quarter. 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, BLUEPHOENIX SOLUTIONS LTD continued to lose money by earning -$0.34 versus -$1.42 in the prior year.
  • Net operating cash flow has significantly decreased to -$0.48 million or 127.35% 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 has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, BLUEPHOENIX SOLUTIONS LTD's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: BluePhoenix Solutions Ratings Report

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Sajan ( SAJA) was another company that pushed the Technology sector lower today. Sajan was down $0.15 (2.8%) to $5.15 on heavy volume. Throughout the day, 12,130 shares of Sajan exchanged hands as compared to its average daily volume of 1,700 shares. The stock ranged in price between $5.15-$5.45 after having opened the day at $5.25 as compared to the previous trading day's close of $5.30.

Sajan has a market cap of $20.3 million and is part of the telecommunications industry. Shares are down 8.6% year-to-date as of the close of trading on Wednesday.

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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