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Biggest Nasdaq Movers for June 11, 2012
It's been a bad morning for the market, with the Nasdaq decreasing 0.2%, the S&P 500 down 0.3% and the Dow falling 0.4%. The Nasdaq Composite Index is a capitalization-weighted index, with each company weighted in proportion to its market value.
The biggest movers traded on the NASDAQ so far are:
Broker Summary: Charles Schwab Online Brokerage
Jive Software (Nasdaq:JIVE) is at $17.58 per share after an increase of 8%. The company is currently trading a volume of 1.3 million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Margin analysis is a great way to understand the profitability of companies. JIVE has a negative operating margin of -34.8%. This means that the company came in with a net operating loss in the most recent quarter.
In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. JIVE has a P/B ratio of 7.48 which shows that its share price is higher than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Mellanox (Nasdaq:MLNX) has risen 6.4% to hit a current price of $65.56 per share. With 754,810 shares changing hands so far today, the company's volume is 1.9 times its average over the past three months. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Profit-margin ratios can give investors deeper insight into management efficiency than earnings alone can provide. Gross profit margin, operating profit margin and net margin are commonly used margins. MLNX's gross profit margin is 72.6%. Compared with its gross profit margin, MLNX's operating profit margin of 14.9% and net profit margin of 8.2% are high.
Valuation ratios include the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). MLNX has a P/E ratio of 102.7, high compared to the industry average of 15.87. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Understanding The P/E Ratio
Falling 4.8%, Garmin (Nasdaq:GRMN) is currently at a share price of $39.77. So far today, 1.4 million shares of the company's stock have changed hands. This is greater than yesterday's volume of 884,607 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. GRMN has a gross profit margin of 52.8%. The operating profit margin indicates how much EBIT is generated per dollar of sales. Operating profit margin for GRMN is 16.2%. Because the business models of companies vary so widely, it can be difficult to compare net profit margin ratios for companies in different industries. Net profit margin for the company is 18.2%.
While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The price/earnings to growth (PEG) ratio can reveal value what price/earnings (P/E) ratios alone may not so that if a company has a high P/E ratio (an indication that its stock is overpriced) but its earnings are growing very quickly, the PEG ratio may reveal that the company is actually fairly valued, or perhaps even a bargain. GRMN has a PEG ratio of 1.5, which is consistent with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
Currently trading at $52.66 per share, Fresh Market (Nasdaq:TFM) has fallen 4.7%. So far today, the company's volume is 511,810 shares, 0.6 times the current daily average. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Profit-margin ratios help us to keep score, as measured over time, of management's ability to generate profits and manage costs and expenses. There are three key profit-margin ratios: gross profit margin, operating profit margin and net profit margin. TFM's gross profit margin is 33.4%. Operating margin can be an important ratio for some investors, particularly those investing in weaker companies or companies in cyclical industries. TFM has an operating profit margin of 9.6%, which is low relative to its gross profit margin. Ideally, a company's profit margin should be stable or rising; declining profit margin should be cause for concern or further investigation. Net margin is 4.9%.
A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. A price/sales ratio is derived by dividing stock market price by company sales. TFM has a high P/S ratio of 2.1. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
Rising 4.5%, Francesca's (Nasdaq:FRAN) is currently trading at $28.81 per share. So far today, the company's volume is 704,644 shares. Volume indicates the level of interest that investors have in a company at its current price. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. FRAN has a gross profit margin of 55%. The operating margin ratio can vary widely across industries, so investors should focus on comparing companies from similar industries or with similar business models. FRAN's operating profit margin is 23.5%. Net profit margin compares net income with sales. The company's net profit margin is 11%.
Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for FRAN is 76.6%, which is relatively high. This means that most of the company's assets are financed through debt. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Clayton Williams Energy (Nasdaq:CWEI) is down 4.2% to reach $55.23 per share. So far today, the company's volume is 29,907 shares, 0.4 times its current three-month average. A stock's volume conveys how excited investors are about it. Margin analysis is a great way to understand the profitability of companies. CWEI's gross profit margin is 67.1%. Operating profit gives investors an opportunity to do profit-margin comparisons between companies that do not issue a separate disclosure of their cost of goods sold figures (which are needed to do gross margin analysis). Operating profit margin for CWEI is 24.6%. Comparing net profit margins for companies with similar business models or in similar industries can yield valuable information as to which business is actually performing better. The company has a net profit margin of 25.8%.
Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. CWEI has a D/E ratio of 178%, which is relatively high. This shows that the company's assets are financed primarily through debt. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
LifePoint Hospitals (Nasdaq:LPNT) has increased to a share price of $39.05, a 4% rise. So far today, the company's volume is 132,670 shares. Trading activity is down from yesterday when 217,350 shares changed hands. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Calculating the profit margin is a great way to gain insight into aspects of how well a company generates and retains money. Instead of measuring how much managers earn from assets, equity or invested capital, profit-margin ratios measure how far a company stretches its total revenue or total sales. LPNT has a gross profit margin of 38.8%. Investors trying to assess a company's ability to continue to pay its fixed expenses even if its business declines may want to evaluate the operating margin ratio. LPNT's operating profit margin is 10.7%. A high net profit margin indicates a highly profitable company, and a low profit margin indicates the opposite. Net margin is 5.9%.
A company's value as an investment is more easily estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. LPNT has a capitalization ratio of 44.4%. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Daily stock performance should be weighed against historical performance and put in context of the market overall. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
The biggest movers traded on the NASDAQ so far are:
| Company | Market Cap | Percentage Change |
| Jive Software Inc (Nasdaq:JIVE) | $1.01 billion | +8% |
| Mellanox Technologies, Ltd. (Nasdaq:MLNX) | $2.45 billion | +6.4% |
| Garmin Ltd. (Nasdaq:GRMN) | $8.69 billion | -4.8% |
| The Fresh Market Inc (Nasdaq:TFM) | $2.65 billion | -4.7% |
| Francesca\'s Holdings Corp (Nasdaq:FRAN) | $1.2 billion | +4.5% |
| Clayton Williams Energy, Inc. (Nasdaq:CWEI) | $701.2 million | -4.2% |
| LifePoint Hospitals, Inc. (Nasdaq:LPNT) | $1.83 billion | +4% |
Jive Software (Nasdaq:JIVE) is at $17.58 per share after an increase of 8%. The company is currently trading a volume of 1.3 million shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Margin analysis is a great way to understand the profitability of companies. JIVE has a negative operating margin of -34.8%. This means that the company came in with a net operating loss in the most recent quarter.
In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. JIVE has a P/B ratio of 7.48 which shows that its share price is higher than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Mellanox (Nasdaq:MLNX) has risen 6.4% to hit a current price of $65.56 per share. With 754,810 shares changing hands so far today, the company's volume is 1.9 times its average over the past three months. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Profit-margin ratios can give investors deeper insight into management efficiency than earnings alone can provide. Gross profit margin, operating profit margin and net margin are commonly used margins. MLNX's gross profit margin is 72.6%. Compared with its gross profit margin, MLNX's operating profit margin of 14.9% and net profit margin of 8.2% are high.
Valuation ratios include the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). MLNX has a P/E ratio of 102.7, high compared to the industry average of 15.87. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Understanding The P/E Ratio
Falling 4.8%, Garmin (Nasdaq:GRMN) is currently at a share price of $39.77. So far today, 1.4 million shares of the company's stock have changed hands. This is greater than yesterday's volume of 884,607 shares. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Profit-margin ratios measure how much money a company squeezes from its total revenue or total sales. Investors can look at a company's gross profit margin, operating profit margin and net margin to understand a company's profitability. GRMN has a gross profit margin of 52.8%. The operating profit margin indicates how much EBIT is generated per dollar of sales. Operating profit margin for GRMN is 16.2%. Because the business models of companies vary so widely, it can be difficult to compare net profit margin ratios for companies in different industries. Net profit margin for the company is 18.2%.
While investment valuation ratios are useful tools in estimating the attractiveness of an investment, remember that it is important to look at a company's historical performance and compare the company ratios with its competitors and industry overall. The price/earnings to growth (PEG) ratio can reveal value what price/earnings (P/E) ratios alone may not so that if a company has a high P/E ratio (an indication that its stock is overpriced) but its earnings are growing very quickly, the PEG ratio may reveal that the company is actually fairly valued, or perhaps even a bargain. GRMN has a PEG ratio of 1.5, which is consistent with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.
A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. A price/sales ratio is derived by dividing stock market price by company sales. TFM has a high P/S ratio of 2.1. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
Rising 4.5%, Francesca's (Nasdaq:FRAN) is currently trading at $28.81 per share. So far today, the company's volume is 704,644 shares. Volume indicates the level of interest that investors have in a company at its current price. Margin analysis tells us how effectively management can wring profits from sales and how much room a company has to withstand a downturn, fend off competition and make mistakes. FRAN has a gross profit margin of 55%. The operating margin ratio can vary widely across industries, so investors should focus on comparing companies from similar industries or with similar business models. FRAN's operating profit margin is 23.5%. Net profit margin compares net income with sales. The company's net profit margin is 11%.
Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. The debt ratio for FRAN is 76.6%, which is relatively high. This means that most of the company's assets are financed through debt. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
Clayton Williams Energy (Nasdaq:CWEI) is down 4.2% to reach $55.23 per share. So far today, the company's volume is 29,907 shares, 0.4 times its current three-month average. A stock's volume conveys how excited investors are about it. Margin analysis is a great way to understand the profitability of companies. CWEI's gross profit margin is 67.1%. Operating profit gives investors an opportunity to do profit-margin comparisons between companies that do not issue a separate disclosure of their cost of goods sold figures (which are needed to do gross margin analysis). Operating profit margin for CWEI is 24.6%. Comparing net profit margins for companies with similar business models or in similar industries can yield valuable information as to which business is actually performing better. The company has a net profit margin of 25.8%.
Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. CWEI has a D/E ratio of 178%, which is relatively high. This shows that the company's assets are financed primarily through debt. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
LifePoint Hospitals (Nasdaq:LPNT) has increased to a share price of $39.05, a 4% rise. So far today, the company's volume is 132,670 shares. Trading activity is down from yesterday when 217,350 shares changed hands. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Calculating the profit margin is a great way to gain insight into aspects of how well a company generates and retains money. Instead of measuring how much managers earn from assets, equity or invested capital, profit-margin ratios measure how far a company stretches its total revenue or total sales. LPNT has a gross profit margin of 38.8%. Investors trying to assess a company's ability to continue to pay its fixed expenses even if its business declines may want to evaluate the operating margin ratio. LPNT's operating profit margin is 10.7%. A high net profit margin indicates a highly profitable company, and a low profit margin indicates the opposite. Net margin is 5.9%.
A company's value as an investment is more easily estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. LPNT has a capitalization ratio of 44.4%. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Daily stock performance should be weighed against historical performance and put in context of the market overall. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
by
Investopedia Staff
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