3 Stocks Pushing The Computer Hardware Industry Lower

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The Computer Hardware industry as a whole closed the day up 0.1% versus the S&P 500, which was down 0.3%. Laggards within the Computer Hardware industry included Dataram ( DRAM), down 2.0%, Lantronix ( LTRX), down 4.7%, Pangaea Logistics Solutions ( PANL), down 3.1%, Acorn Energy ( ACFN), down 3.9% and Concurrent Computer ( CCUR), down 1.7%.

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

Acorn Energy ( ACFN) is one of the companies that pushed the Computer Hardware industry lower today. Acorn Energy was down $0.04 (3.9%) to $1.00 on heavy volume. Throughout the day, 339,768 shares of Acorn Energy exchanged hands as compared to its average daily volume of 193,500 shares. The stock ranged in price between $0.97-$1.06 after having opened the day at $1.06 as compared to the previous trading day's close of $1.04.

Acorn Energy, Inc., through its subsidiaries, provides technology driven solutions for energy infrastructure asset management worldwide. It offers oil and gas sensor systems, a fiber optic sensing system for the energy, commercial security, and defense markets. Acorn Energy has a market cap of $23.3 million and is part of the technology sector. Shares are down 74.5% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Acorn Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Acorn Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ACFN go 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, ACORN ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ACORN ENERGY INC is currently lower than what is desirable, coming in at 29.35%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -117.02% is significantly below that of the industry average.
  • ACFN'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 69.01%, 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, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Electronic Equipment, Instruments & Components industry average, but is greater than that of the S&P 500. The net income increased by 22.9% when compared to the same quarter one year prior, going from -$7.17 million to -$5.53 million.
  • ACFN, with its decline in revenue, underperformed when compared the industry average of 1.8%. Since the same quarter one year prior, revenues slightly dropped by 9.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: Acorn Energy Ratings Report

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At the close, Pangaea Logistics Solutions ( PANL) was down $0.19 (3.1%) to $5.97 on heavy volume. Throughout the day, 32,627 shares of Pangaea Logistics Solutions exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in price between $5.97-$6.32 after having opened the day at $6.16 as compared to the previous trading day's close of $6.16.

Pangaea Logistics Solutions has a market cap of $81.2 million and is part of the technology sector. Shares are down 33.5% year-to-date as of the close of trading on Monday. Currently there are 7 analysts who rate Pangaea Logistics Solutions a buy, 1 analyst rates it a sell, and 4 rate it a hold.

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Lantronix ( LTRX) was another company that pushed the Computer Hardware industry lower today. Lantronix was down $0.09 (4.7%) to $1.83 on light volume. Throughout the day, 31,609 shares of Lantronix exchanged hands as compared to its average daily volume of 44,400 shares. The stock ranged in price between $1.83-$1.99 after having opened the day at $1.92 as compared to the previous trading day's close of $1.92.

Lantronix, Inc. designs, develops, markets, and sells networking and communications products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Lantronix has a market cap of $29.1 million and is part of the technology sector. Shares are up 22.7% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Lantronix a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Lantronix as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

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Highlights from TheStreet Ratings analysis on LTRX go as follows:

  • LTRX's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Compared to its closing price of one year ago, LTRX's share price has jumped by 33.57%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • LTRX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Communications Equipment industry and the overall market, LANTRONIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Communications Equipment industry average. The net income increased by 1.9% when compared to the same quarter one year prior, going from -$0.27 million to -$0.26 million.

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

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