Moves in Smaller Tech Stocks (BV, BSFT, JIVE, SYKE)
Some smaller tech companies saw unusual movement in their stocks on Tuesday. And not just in Bazaarvoice (NASDAQ: BV), Broadsoft (NASDAQ: BSFT), Jive Software (NASDAQ: JIVE) and Sykes Enterprises (NASDAQ: SYKE), which are discussed below. But also e-mail marketing company ExactTarget (NYSE: ET), which fell more than eight percent a day after announcing two acquisitions, and Shanghai-based Shanda Games (NASDAQ: GAME), which rose more than eight percent, though it is expected to post lower third-quarter earnings and revenues when it reports next week.
Shares of this application software provider plunged more than 13 percent to a new 52-week low the day after it announced an acquisition, management changes and revised guidance. The Austin, Texas-based company sports a market capitalization near $678 million. Its long-term earnings per share (EPS) growth forecast is about 30 percent, but the return on equity and the return on investment are in negative territory. Short interest is less than 10 percent of the float. Yet, all four analysts surveyed by Thomson/First Call who follow the stock recommend buying shares. The upside potential, based on the analysts' mean price target, is now more than 51 percent, which is greater than the 52-week high. But shares were already trading at a 52-week low even before Tuesday's pull back. Shares are down nearly 35 percent year to date. So no surprise that the stock has underperformed the Nasdaq over the past six months.
This Maryland-based software provider to telecoms reported underwhelming revenue figures and disappointing guidance, and its shares ended the day about 19 percent lower. The company has a market cap of about $820 million, and the long-term EPS growth forecast is about 13 percent. The P/E ratio is more than the industry average but so is the operating margin. Note that short interest is more than 18 percent of the float. Nine of the 14 analysts surveyed recommend buying shares. And the mean price target, or where analysts expect the share price to go, is now more than 31 percent higher than the current share price, though that is less than the 52-week high. Shares are now trading in the same neighborhood they were at the beginning of the year, but still well above the 52-week low. Over the past six months, the stock has outperformed competitors Alcatel-Lucent (NYSE: ALU) and Cisco Systems (NASDAQ: CSCO).
This social business software provider reported better-than-expected third-quarter results but offered a soft revenue outlook due to the loss of a big advertiser. Still, the stock ended Tuesday almost 14 percent higher. The company is headquartered in Palo Alto, California, and has a market cap near $790 million. The long-term EPS growth forecast is about 30 percent but the return on equity is in negative territory. And shares sold short are more than 14 percent of the float. Of the 10 analysts polled, eight recommend buying shares; none recommend selling. Analysts feel the stock still has plenty room to grow, as their mean price target is more than 32 percent higher than the current share price. However, the share price is down about 20 percent year to date, even after the pop on Tuesday. The stock has underperformed the Nasdaq over the past six months.
Shares of this business outsourcing services provider rose more than 10 percent following a better-than-expected third-quarter earnings report and raised guidance on Monday. The $660-plus million market cap company is headquartered in Tampa, Florida. Its long-term EPS growth forecast is about 18 percent and the forward earnings multiple is less than the industry average P/E ratio. But the return on equity is less than eight percent. Short interest is less than three percent of the float. Four out of 10 analysts surveyed recommend buying shares, but none recommend selling. The mean price target indicates potential upside of more than 15 percent, though it is less than the 52-week high set early this year. Before this jump, shares had been trading mostly between $13.50 and $14.50 since mid August. But over the past six months, the stock has underperformed the Nasdaq.
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