3 Stocks Pushing The Computer Software & Services Industry Lower

The Computer Software & Services industry as a whole closed the day down 1.3% versus the S&P 500, which was down 0.8%. Laggards within the Computer Software & Services industry included TSR ( TSRI), down 1.7%, Sajan ( SAJA), down 3.8%, Authentidate ( ADAT), down 4.3%, MGT Capital Investments ( MGT), down 6.1% and Asure Software ( ASUR), down 2.0%.

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

Asure Software ( ASUR) is one of the companies that pushed the Computer Software & Services industry lower today. Asure Software was down $0.12 (2.0%) to $5.88 on heavy volume. Throughout the day, 10,346 shares of Asure Software exchanged hands as compared to its average daily volume of 5,700 shares. The stock ranged in price between $5.87-$6.00 after having opened the day at $6.00 as compared to the previous trading day's close of $6.00.

Asure Software, Inc. provides cloud-based software-as-a-service (SaaS) time and labor management, and workspace management solutions worldwide. The company offers a suite of solutions to help clients optimize and manage their mobile workforces and their global workspaces. Asure Software has a market cap of $35.9 million and is part of the technology sector. Shares are up 6.6% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Asure Software a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Asure Software as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from TheStreet Ratings analysis on ASUR go as follows:

  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • ASURE SOFTWARE INC has improved earnings per share by 11.1% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, ASURE SOFTWARE INC continued to lose money by earning -$0.04 versus -$0.31 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus -$0.04).
  • The gross profit margin for ASURE SOFTWARE INC is currently very high, coming in at 78.33%. Regardless of ASUR's high profit margin, it has managed to decrease from the same period last year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, ASURE SOFTWARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 3.74 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.35, which clearly demonstrates the inability to cover short-term cash needs.

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

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At the close, Authentidate ( ADAT) was down $0.01 (4.3%) to $0.13 on light volume. Throughout the day, 4,157 shares of Authentidate exchanged hands as compared to its average daily volume of 121,200 shares. The stock ranged in price between $0.13-$0.15 after having opened the day at $0.15 as compared to the previous trading day's close of $0.14.

Authentidate Holding Corp. provides Web-based software applications, and telehealth products and services in the United States. Authentidate has a market cap of $5.5 million and is part of the technology sector. Shares are down 85.1% year-to-date as of the close of trading on Wednesday.

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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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Sajan ( SAJA) was another company that pushed the Computer Software & Services industry lower today. Sajan was down $0.20 (3.8%) to $5.05 on heavy volume. Throughout the day, 10,083 shares of Sajan exchanged hands as compared to its average daily volume of 2,600 shares. The stock ranged in price between $5.01-$5.10 after having opened the day at $5.10 as compared to the previous trading day's close of $5.25.

Sajan has a market cap of $25.1 million and is part of the technology sector. Shares are down 7.1% year-to-date as of the close of trading on Wednesday. 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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