Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Blackbaud ( BLKB) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Blackbaud as such a stock due to the following factors:

  • BLKB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.0 million.
  • BLKB has traded 2,961 shares today.
  • BLKB is trading at a new lifetime high.

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More details on BLKB:

Blackbaud, Inc. provides software solutions and related services for nonprofit, charitable giving, and education communities worldwide. The stock currently has a dividend yield of 1%. BLKB has a PE ratio of 79.0. Currently there is 1 analyst that rates Blackbaud a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Blackbaud has been 168,900 shares per day over the past 30 days. Blackbaud has a market cap of $2.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.82 and a short float of 9.7% with 16.30 days to cover. Shares are up 13.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Blackbaud as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • BLKB's revenue growth has slightly outpaced the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 16.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, BLKB's share price has jumped by 45.72%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • BLACKBAUD INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BLACKBAUD INC reported lower earnings of $0.61 versus $0.68 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $0.61).
  • The gross profit margin for BLACKBAUD INC is rather high; currently it is at 58.97%. Regardless of BLKB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLKB's net profit margin of 3.05% is significantly lower than the industry average.
  • 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 on the basis of return on equity, BLACKBAUD INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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