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Nasdaq Stocks Making Big Moves on July 6, 2012
After the morning's trading, the market is not looking good. The Nasdaq has fallen 1.7%; the S&P 500 has slipped 1.3%; and the Dow has declined 1.4%. The Nasdaq Composite Index represents all the stocks that trade on the Nasdaq stock market.
The biggest movers traded on the NASDAQ so far are:
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After a precipitous drop of 29.7%, Informatica (Nasdaq:INFA) is now trading at a share price of $30.50. The company's volume for the day so far is 14.7 million shares. This is 12.8 times its average volume over the past three months. If a stock price moves on high volume, this means that the change is a significant one. 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. INFA has a gross profit margin of 85.3%, which is on the high end. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. Relative to its gross profit margin, INFA's operating profit margin of 19.4% and net profit margin of 15% are high.
Valuation ratios like 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 are useful in determining how attractive a potential or existing investment is. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. INFA's P/E ratio of 39.5 is under the industry average of 60.58. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: How To Find P/E And PEG Ratios
Taking a 10.8% hit, MicroStrategy (Nasdaq:MSTR) is currently trading at $120.33 per share. So far today, the company's volume is 196,063 shares, 1.9 times its 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 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. MSTR has a high gross profit margin of 78.4%. A high gross profit margin generally means that the company can make a reasonable profit on sales, provided that overhead costs do not increase. MSTR's operating margin of 0.3% and net margin of 2.9% are high relative to its gross margin.
Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. PEG ratio for MSTR is 5.79. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
Currently trading at $76.93 per share, Citrix (Nasdaq:CTXS) has fallen 8.2%. So far today, 2.2 million shares have changed hands. A stock's volume conveys how excited investors are about it. Margin analysis is a great way to understand the profitability of companies. CTXS' gross profit margin of 93% is fairly high. This may indicate that the company is over-pricing its products and/or services. CTXS has an operating profit margin of 13.7% and a net profit margin of 15.2%, both high compared to its gross profit margin.
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/book value ratio is one of the more common methods of determining whether a stock is fairly valued. The P/B ratio for CTXS is 5.16, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Falling 7.3%, F5 Networks (Nasdaq:FFIV) is currently at a share price of $94.06. This morning, 1.2 million shares have been traded, while it was 1.4 million shares yesterday. Volume is an important indicator because it indicates how significant a price shift is. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. FFIV's gross profit margin of 84.5% is on the high side. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. Operating margin for FFIV is 30.8% and net margin is 20.9%, both high relative to its gross margin.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. The P/S ratio for FFIV is 8.44, which is relatively high. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
ANSYS (Nasdaq:ANSS) is down 5.9% to reach $60.66 per share. The company is currently trading a volume of 714,733 shares. This is 1.8 times the average volume over the last three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Margin ratios highlight companies that are worth further examination. ANSS has a gross profit margin of 89.5%, which is on the high end. This means that the company will have a lot of money left over to spend on other business operations, such as research and development or marketing. Relative to its gross profit margin, ANSS' operating profit margin of 36.6% and net profit margin of 25.6% are high.
When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for ANSS is a low 27.7%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
Green Mountain Coffee Roasters (Nasdaq:GMCR) has increased to a share price of $24.48, a 4% rise. So far today, the company's volume is 5.3 million shares, 1.3 times the current daily average. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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. GMCR has a gross profit margin of 37.9%. 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. Relative to its gross profit margin, GMCR's operating margin of 16.9% is on the low side. Net profit margin examines how effectively a company is managed and how profitable it is by looking at how much of each dollar in revenues ultimately hits the company's bottom line. The company's net profit margin is 9.5%.
Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. GMCR has a fairly low capitalization ratio of 16.7%. Investors generally consider a company with low debt and high equity levels is a good quality investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Golar LNG Limited (Nasdaq:GLNG) has risen 3.7% to hit a current price of $38.69 per share. The company is currently trading a volume of 385,679 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt-equity (D/E) ratio is a leverage ratio. GLNG's D/E ratio of 203% is on the high side. This shows that the company's assets are financed primarily through debt. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
The biggest movers traded on the NASDAQ so far are:
| Company | Market Cap | Percentage Change |
| Informatica Corporation (Nasdaq:INFA) | $4.7 billion | -29.7% |
| MicroStrategy Incorporated (Nasdaq:MSTR) | $1.46 billion | -10.8% |
| Citrix Systems (Nasdaq:CTXS) | $15.6 billion | -8.2% |
| F5 Networks, Inc. (Nasdaq:FFIV) | $8.05 billion | -7.3% |
| ANSYS, Inc. (Nasdaq:ANSS) | $6.01 billion | -5.9% |
| Green Mountain Coffee Roasters Inc. (Nasdaq:GMCR) | $3.66 billion | +4% |
| Golar LNG Limited (USA) (Nasdaq:GLNG) | $3 billion | +3.7% |
After a precipitous drop of 29.7%, Informatica (Nasdaq:INFA) is now trading at a share price of $30.50. The company's volume for the day so far is 14.7 million shares. This is 12.8 times its average volume over the past three months. If a stock price moves on high volume, this means that the change is a significant one. 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. INFA has a gross profit margin of 85.3%, which is on the high end. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. Relative to its gross profit margin, INFA's operating profit margin of 19.4% and net profit margin of 15% are high.
Valuation ratios like 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 are useful in determining how attractive a potential or existing investment is. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. INFA's P/E ratio of 39.5 is under the industry average of 60.58. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: How To Find P/E And PEG Ratios
Taking a 10.8% hit, MicroStrategy (Nasdaq:MSTR) is currently trading at $120.33 per share. So far today, the company's volume is 196,063 shares, 1.9 times its 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 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. MSTR has a high gross profit margin of 78.4%. A high gross profit margin generally means that the company can make a reasonable profit on sales, provided that overhead costs do not increase. MSTR's operating margin of 0.3% and net margin of 2.9% are high relative to its gross margin.
Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. PEG ratio for MSTR is 5.79. While P/E ratios are important indicators of market value, a high P/E in and of itself is not bad because it may indicate a company whose earnings are growing very rapidly, so many investors look at the PEG ratio in order to get an idea of whether or not a particular P/E ratio is justified by underlying earnings growth.
Currently trading at $76.93 per share, Citrix (Nasdaq:CTXS) has fallen 8.2%. So far today, 2.2 million shares have changed hands. A stock's volume conveys how excited investors are about it. Margin analysis is a great way to understand the profitability of companies. CTXS' gross profit margin of 93% is fairly high. This may indicate that the company is over-pricing its products and/or services. CTXS has an operating profit margin of 13.7% and a net profit margin of 15.2%, both high compared to its gross profit margin.
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/book value ratio is one of the more common methods of determining whether a stock is fairly valued. The P/B ratio for CTXS is 5.16, indicating that the stock is trading for more than its book value. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Falling 7.3%, F5 Networks (Nasdaq:FFIV) is currently at a share price of $94.06. This morning, 1.2 million shares have been traded, while it was 1.4 million shares yesterday. Volume is an important indicator because it indicates how significant a price shift is. There are many tools investors can use to evaluate a stock, including margins. Margins, quite simply, are earnings expressed as a ratio, or a percentage of sales, and this allows investors to compare the profitability of different companies, while net earnings, which are presented as an absolute number, cannot. FFIV's gross profit margin of 84.5% is on the high side. Since gross profit margins tend to stay stable, sudden changes may indicate financial fraud, accounting irregularities or problems in the business. Operating margin for FFIV is 30.8% and net margin is 20.9%, both high relative to its gross margin.
It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/sales ratio is used for spotting recovery situations or for double-checking that a company's growth has not become overvalued. The P/S ratio for FFIV is 8.44, which is relatively high. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
ANSYS (Nasdaq:ANSS) is down 5.9% to reach $60.66 per share. The company is currently trading a volume of 714,733 shares. This is 1.8 times the average volume over the last three months. Volume is also used as a secondary indicator to help confirm what the price movement is suggesting. Margin ratios highlight companies that are worth further examination. ANSS has a gross profit margin of 89.5%, which is on the high end. This means that the company will have a lot of money left over to spend on other business operations, such as research and development or marketing. Relative to its gross profit margin, ANSS' operating profit margin of 36.6% and net profit margin of 25.6% are high.
When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for ANSS is a low 27.7%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
Green Mountain Coffee Roasters (Nasdaq:GMCR) has increased to a share price of $24.48, a 4% rise. So far today, the company's volume is 5.3 million shares, 1.3 times the current daily average. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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. GMCR has a gross profit margin of 37.9%. 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. Relative to its gross profit margin, GMCR's operating margin of 16.9% is on the low side. Net profit margin examines how effectively a company is managed and how profitable it is by looking at how much of each dollar in revenues ultimately hits the company's bottom line. The company's net profit margin is 9.5%.
Investment valuation ratios provide investors with an estimation, albeit a simplistic one, of the value of a stock. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. GMCR has a fairly low capitalization ratio of 16.7%. Investors generally consider a company with low debt and high equity levels is a good quality investment. A low level of debt and a healthy proportion of equity in a company's capital structure is an indication of financial fitness.
Golar LNG Limited (Nasdaq:GLNG) has risen 3.7% to hit a current price of $38.69 per share. The company is currently trading a volume of 385,679 shares. High volume indicates a lot of investor interest while low volume indicates the opposite. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt-equity (D/E) ratio is a leverage ratio. GLNG's D/E ratio of 203% is on the high side. This shows that the company's assets are financed primarily through debt. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
The Bottom Line The nature of the market is such that stocks will have good days and bad days. Daily stock performance should be weighed against historical performance and put in context of the market overall. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.
by
Investopedia Staff
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