Today's Pre-Market Mover With Heavy Volume: IAC/InterActiveCorp (IACI)

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

  • IACI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.4 million.
  • IACI traded 101,150 shares today in the pre-market hours as of 8:50 AM, representing 18% of its average daily volume.

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More details on IACI:

IAC/InterActiveCorp operates as a media and Internet company in the United States and internationally. It operates through four segments: The Match Group, Search & Applications, Media, and eCommerce. The stock currently has a dividend yield of 1.8%. IACI has a PE ratio of 3. Currently there are 7 analysts that rate IAC/InterActiveCorp a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for IAC/InterActiveCorp has been 769,000 shares per day over the past 30 days. IAC/InterActiveCorp has a market cap of $5.9 billion and is part of the technology sector and internet industry. The stock has a beta of 1.02 and a short float of 1.6% with 2.73 days to cover. Shares are up 29.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates IAC/InterActiveCorp as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 4.3%. 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 gross profit margin for IAC/INTERACTIVECORP is currently very high, coming in at 75.20%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, IACI's net profit margin of 3.41% significantly trails the industry average.
  • IACI's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that IACI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.77 is high and demonstrates strong liquidity.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

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