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 iGate ( IGTE) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified iGate as such a stock due to the following factors:

  • IGTE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.5 million.
  • IGTE traded 62,780 shares today in the pre-market hours as of 8:14 AM, representing 10.8% of its average daily volume.

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More details on IGTE:

iGATE Corporation, through its subsidiaries, provides information technology (IT) and IT-enabled operations offshore outsourcing solutions and services to large and medium-size organizations. Currently there are 8 analysts that rate iGate a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for iGate has been 344,100 shares per day over the past 30 days. iGate has a market cap of $3.6 billion and is part of the technology sector and computer software & services industry. Shares are up 12.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates iGate as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 10.7%. 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 14.6% when compared to the same quarter one year prior, going from $33.14 million to $37.97 million.
  • Even though the current debt-to-equity ratio is 1.33, it is still below the industry average, suggesting that this level of debt is acceptable within the IT Services industry. Despite the fact that IGTE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.62 is high and demonstrates strong liquidity.
  • 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 IT Services industry and the overall market, IGATE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for IGATE CORP is currently lower than what is desirable, coming in at 34.77%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 11.45% trails that of the industry average.

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