Trade-Ideas LLC identified Cvent ( CVT) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cvent as such a stock due to the following factors:

  • CVT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.4 million.
  • CVT has traded 541,181 shares today.
  • CVT traded in a range 220% of the normal price range with a price range of $1.36.
  • CVT traded above its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on CVT:

Cvent, Inc. provides a cloud-based enterprise event management platform with solutions for corporate events and meetings in North America and internationally. Currently there are no analysts that rate Cvent a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Cvent has been 744,800 shares per day over the past 30 days. Cvent has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. Shares are down 7.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cvent as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from the ratings report include:
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Internet Software & Services industry and the overall market, CVENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CVENT INC reported significant earnings per share improvement 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, CVENT INC swung to a loss, reporting -$0.46 versus $0.03 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.46).
  • The gross profit margin for CVENT INC is currently very high, coming in at 81.99%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.28% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 161.69% to $37.65 million when compared to the same quarter last year. In addition, CVENT INC has also vastly surpassed the industry average cash flow growth rate of 19.28%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 49.1% when compared to the same quarter one year prior, rising from -$2.35 million to -$1.20 million.

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