3 Stocks Pushing The Computer Software & Services Industry Lower

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.

The Computer Software & Services industry as a whole closed the day down 0.2% versus the S&P 500, which was down 0.2%. Laggards within the Computer Software & Services industry included CounterPath ( CPAH), down 8.9%, Sajan ( SAJA), down 10.9%, Authentidate ( ADAT), down 17.3%, GSE Systems ( GVP), down 5.2% and Liquid Holdings Group ( LIQD), down 20.1%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Authentidate ( ADAT) is one of the companies that pushed the Computer Software & Services industry lower today. Authentidate was down $0.03 (17.3%) to $0.13 on average volume. Throughout the day, 163,610 shares of Authentidate exchanged hands as compared to its average daily volume of 114,100 shares. The stock ranged in price between $0.12-$0.15 after having opened the day at $0.12 as compared to the previous trading day's close of $0.16.

Authentidate Holding Corp. provides Web-based software applications, and telehealth products and services in the United States. Authentidate has a market cap of $6.0 million and is part of the technology sector. Shares are down 83.3% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Authentidate as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from TheStreet Ratings analysis on ADAT go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Technology industry. The net income has significantly decreased by 54.9% when compared to the same quarter one year ago, falling from -$1.58 million to -$2.45 million.
  • 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 Health Care Technology industry and the overall market, AUTHENTIDATE HOLDING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • ADAT's debt-to-equity ratio of 0.68 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. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.28 is very low and demonstrates very weak liquidity.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 77.59%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 50.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • AUTHENTIDATE HOLDING CORP's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AUTHENTIDATE HOLDING CORP continued to lose money by earning -$0.26 versus -$0.45 in the prior year.

You can view the full analysis from the report here: Authentidate Ratings Report

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At the close, Sajan ( SAJA) was down $0.64 (10.9%) to $5.25 on heavy volume. Throughout the day, 5,457 shares of Sajan exchanged hands as compared to its average daily volume of 2,500 shares. The stock ranged in price between $5.25-$5.40 after having opened the day at $5.26 as compared to the previous trading day's close of $5.89.

Sajan has a market cap of $28.1 million and is part of the technology sector. Shares are up 4.2% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Sajan a buy, no analysts rate it a sell, and none rate it a hold.

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CounterPath ( CPAH) was another company that pushed the Computer Software & Services industry lower today. CounterPath was down $0.04 (8.9%) to $0.41 on light volume. Throughout the day, 2,572 shares of CounterPath exchanged hands as compared to its average daily volume of 20,200 shares. The stock ranged in price between $0.41-$0.45 after having opened the day at $0.42 as compared to the previous trading day's close of $0.45.

CounterPath has a market cap of $18.2 million and is part of the technology sector. Shares are down 11.8% year-to-date as of the close of trading on Monday.

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