Trade-Ideas: Blackbaud (BLKB) Is Today's New Lifetime High Stock

Trade-Ideas LLC identified Blackbaud ( BLKB) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Blackbaud as such a stock due to the following factors:

  • BLKB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.4 million.
  • BLKB has traded 1,056 shares today.
  • BLKB is trading at a new lifetime high.

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More details on BLKB:

Blackbaud, Inc. provides software solutions and related services for nonprofit, education institutions, healthcare organizations, foundations, charitable giving entities, and corporations worldwide. The stock currently has a dividend yield of 0.7%. BLKB has a PE ratio of 119. Currently there are 6 analysts that rate Blackbaud a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Blackbaud has been 207,100 shares per day over the past 30 days. Blackbaud has a market cap of $3.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.77 and a short float of 4.4% with 10.48 days to cover. Shares are up 7.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Blackbaud as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • BLKB's revenue growth has slightly outpaced the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 15.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 16.6% when compared to the same quarter one year prior, going from $4.29 million to $5.00 million.
  • The gross profit margin for BLACKBAUD INC is rather high; currently it is at 62.74%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BLKB's net profit margin of 2.95% significantly trails the industry average.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • BLACKBAUD INC has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLACKBAUD INC reported lower earnings of $0.55 versus $0.61 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $0.55).

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