NEW YORK (TheStreet) -- Shares of Informatica were gaining 4.6% to $42.92 Tuesday following reports that the data software company has contacted potential buyers. Informatica is reportedly working with investment banker Qatalyst Partners to attract takeover interest from private equity firms or other software companies, according to The Wall Street Journal. The company reportedly hasn't contact any potential bidders yet, and there is no formal process to sell in place as all current discussions are preliminary, according to the publication. About 6.2 million shares of Informatica were traded by 3:50 p.m. Tuesday following the report, well above the company's average daily trading volumes of about 1.2 million shares. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates INFORMATICA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate INFORMATICA CORP (INFA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: 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 119.3% when compared to the same quarter one year prior, rising from $10.40 million to $22.81 million. INFA's revenue growth trails the industry average of 26.1%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share. INFA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, INFA has a quick ratio of 2.07, which demonstrates the ability of the company to cover short-term liquidity needs. Net operating cash flow has increased to $40.97 million or 37.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.90%. INFORMATICA CORP 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, INFORMATICA CORP reported lower earnings of $0.77 versus $0.84 in the prior year. This year, the market expects an improvement in earnings ($1.55 versus $0.77). You can view the full analysis from the report here: INFA Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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