Blackhawk Network Holdings (HAWK) Hits New Lifetime High

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 Blackhawk Network Holdings ( HAWK) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Blackhawk Network Holdings as such a stock due to the following factors:

  • HAWK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.7 million.
  • HAWK has traded 23,047 shares today.
  • HAWK is trading at a new lifetime high.

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More details on HAWK:

Blackhawk Network Holdings, Inc. provides a range of prepaid gift, telecom, and debit cards; and related prepaid products and payment services. HAWK has a PE ratio of 42. Currently there are 6 analysts that rate Blackhawk Network Holdings a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Blackhawk Network Holdings has been 507,700 shares per day over the past 30 days. Blackhawk Network has a market cap of $536.2 million and is part of the financial sector and financial services industry. The stock has a beta of 0.36 and a short float of 18.8% with 2.81 days to cover. Shares are up 4.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Blackhawk Network Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 22.5%. Since the same quarter one year prior, revenues rose by 37.1%. Growth in the company's revenue appears to have helped boost the 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 265.6% when compared to the same quarter one year prior, rising from -$2.84 million to $4.71 million.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • Powered by its strong earnings growth of 233.33% and other important driving factors, this stock has surged by 57.91% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • BLACKHAWK NETWORK HLDGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLACKHAWK NETWORK HLDGS INC reported lower earnings of $0.81 versus $1.01 in the prior year. This year, the market expects an improvement in earnings ($2.20 versus $0.81).

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