NEW YORK (TheStreet) -- Bankrate (RATE) shares are down 15.7% to $11.65 on Monday after the publisher, aggregator and distributor of personal finance content on the Internet revealed that the SEC was investigating its financial reporting from 2012.
Investigators are looking into three accruals of revenue totaling approximately $781,000 and two adjustments to reduce accrued expenses totaling approximately $850,000, the company said.
Bankrate also announced that Steven Barnhart would serve as interim CFO starting today, replacing former CFO Edward J. DiMaria.
Barnhart was previously Senior Vice President and CFO of Sears Hometown and Outlet Stores.
TheStreet Ratings team rates BANKRATE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANKRATE INC (RATE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, 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 deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: