Trade-Ideas LLC identified Synchronoss Technologies ( SNCR) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Synchronoss Technologies as such a stock due to the following factors:

  • SNCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.7 million.
  • SNCR has traded 267,145 shares today.
  • SNCR is down 3.9% today.
  • SNCR was up 8.7% yesterday.

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More details on SNCR:

Synchronoss Technologies, Inc. provides cloud solutions and software-based activation for connected devices worldwide. SNCR has a PE ratio of 1. Currently there are 5 analysts that rate Synchronoss Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Synchronoss Technologies has been 505,600 shares per day over the past 30 days. Synchronoss has a market cap of $985.7 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.49 and a short float of 18.8% with 4.42 days to cover. Shares are down 31.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Synchronoss Technologies as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 20.7%. 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 current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.46, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for SYNCHRONOSS TECHNOLOGIES is rather high; currently it is at 57.34%. Regardless of SNCR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SNCR's net profit margin of 3.35% is significantly lower than the industry average.
  • 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 Software industry. The net income has significantly decreased by 61.3% when compared to the same quarter one year ago, falling from $13.62 million to $5.27 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Software industry and the overall market, SYNCHRONOSS TECHNOLOGIES's return on equity is below that of both the industry average and the S&P 500.

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