One Reason TASER Int'l. (TASR) Stock Is Down

NEW YORK (TheStreet) -- Shares of TASER International (TASR) are down 4.01% to $33.03 on heavy volume in afternoon trading Thursday, after the company had its rating cut by analysts at Oppenheimer this morning.

The firm was downgraded to a "perform" rating from "outperform" on a valuation call.

Oppenheimer also removed its $28 price target on Taser shares, noting that there is there is no potential upside to the stock in the near term.

About 3.03 million shares have exchanged hands as of 1:47 p.m. ET today, compared to its average trading volume of about 2.7 million shares a day.

Scottsdale, AZ-based TASER is engaged in development, manufacture and sale of electronic control devices designed for use in the law enforcement, military, corrections, private security and personal defense markets.

Separately, TheStreet Ratings team rates TASER INTERNATIONAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate TASER INTERNATIONAL INC (TASR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 23.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TASR's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.69, which clearly demonstrates the ability to cover short-term cash needs.
  • TASER INTERNATIONAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TASER INTERNATIONAL INC increased its bottom line by earning $0.36 versus $0.34 in the prior year. This year, the market expects an improvement in earnings ($0.39 versus $0.36).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 112.5% when compared to the same quarter one year prior, rising from $3.39 million to $7.21 million.
  • The gross profit margin for TASER INTERNATIONAL INC is rather high; currently it is at 68.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.09% is above that of the industry average.
  • You can view the full analysis from the report here: TASR Ratings Report
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