Constant Contact (CTCT) Moving On Heavy Volume In The Pre-Market Hours

Trade-Ideas LLC identified Constant Contact ( CTCT) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Constant Contact as such a stock due to the following factors:

  • CTCT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.2 million.
  • CTCT traded 254,946 shares today in the pre-market hours as of 9:02 AM, representing 55.1% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CTCT with the Ticky from Trade-Ideas. See the FREE profile for CTCT NOW at Trade-Ideas

More details on CTCT:

Constant Contact, Inc. provides online marketing tools that are designed for small businesses, nonprofits, and associations worldwide. It offers all-in-one online marketing platform for small organizations to drive repeat business and find new customers. CTCT has a PE ratio of 53. Currently there are 2 analysts that rate Constant Contact a buy, 2 analysts rate it a sell, and 2 rate it a hold.

The average volume for Constant Contact has been 558,100 shares per day over the past 30 days. Constant Contact has a market cap of $1.0 billion and is part of the services sector and media industry. The stock has a beta of 1.28 and a short float of 4% with 2.71 days to cover. Shares are down 14.2% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Constant Contact as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:
  • CONSTANT CONTACT INC has improved earnings per share by 18.8% 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, CONSTANT CONTACT INC increased its bottom line by earning $0.44 versus $0.23 in the prior year. This year, the market expects an improvement in earnings ($1.31 versus $0.44).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.2%. Since the same quarter one year prior, revenues rose by 10.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for CONSTANT CONTACT INC is currently very high, coming in at 80.04%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CTCT's net profit margin of 6.96% significantly trails the industry average.
  • Net operating cash flow has decreased to $14.30 million or 22.06% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • CTCT has underperformed the S&P 500 Index, declining 9.63% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.