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F5 Networks and Other Big Movers In Technology on September 18, 2012
After the morning's trading, the Nasdaq has climbed 0.1%, the S&P 500 remains relatively unchanged and the Dow is trading up 0.1%. The technology sector is a category of stocks relating to the research, development and/or distribution of technologically based goods and services. This sector contains businesses revolving around the manufacturing of electronics, creation of software, computers or products and services relating to information technology. The technology sector offers a wide arrange of products and services for both customers and other businesses. Consumer goods like personal computers, stereos and televisions are continually improved and upgraded, offering the latest technology to all users. Businesses receive information and services from software and database systems, which allow the companies to make strategic business decisions.
The Technology sector (XLK) has moved little so far today and here are its biggest movers:
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Velti (Nasdaq:VELT) is trading at $9.61 per share, a significant rise of 11.7%. So far today, 2.6 million shares have changed hands. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. The P/B ratio for VELT is 2.07, indicating that the stock is trading for more than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Energizer Holdings (NYSE:ENR) is currently at $74.76 per share after a dramatic increase of 10.1%. With 1.8 million shares changing hands so far today, the company's volume is 2.8 times its current three-month average. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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. The dividend yield is calculated by dividing a company's dividends per share by its stock price. ENR's dividend yield is 2.4%. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Investment Valuation Ratios: Dividend Yield
American Science & Engineering (Nasdaq:ASEI) has moved up 8.3% and is currently trading at $67.07 per share. So far today, the company's volume is 224,947 shares. This is 6.9 times the current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/sales ratio measures a company's stock market price by its revenues. ASEI's P/S ratio of 2.42 is on the high side. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
Allot (Nasdaq:ALLT) is down 6.8% to reach $25.15 per share. The company's volume is currently 547,332 shares for the day, more than yesterday's 222,702 shares. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. The debt ratio for ALLT is a low 19.6%. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.
After a decline of 6.7%, BroadSoft (Nasdaq:BSFT) has hit a share price of $39.75. So far today, the company's volume is 774,337 shares. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. BSFT's D/E ratio is 59%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
After rising 6.2%, F5 Networks (Nasdaq:FFIV) is currently trading at a share price of $110.94. So far today, the company's volume is two million shares, one times the average volume over the last three months. If a stock price moves on high volume, this means that the change is a significant one. 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. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). FFIV is in line with the industry average with a P/E ratio of 30.5. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Can Investors Trust the P/E Ratio?
Arrow Electronics (NYSE:ARW) has decreased to $35.89 per share, a 3.1% fall. This morning, the company's volume is 303,174 shares. This is 0.6 times the average daily volume. 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. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. ARW's capitalization ratio is 34.5%. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. 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 Technology sector (XLK) has moved little so far today and here are its biggest movers:
| Company | Market Cap | Percentage Change |
| Velti (Nasdaq:VELT) | $556.9 million | +11.7% |
| Energizer Holdings (NYSE:ENR) | $4.37 billion | +10.1% |
| American Science & Engineering (Nasdaq:ASEI) | $522.1 million | +8.3% |
| Allot (Nasdaq:ALLT) | $867.1 million | -6.8% |
| BroadSoft (Nasdaq:BSFT) | $1.18 billion | -6.7% |
| F5 Networks (Nasdaq:FFIV) | $8.26 billion | +6.2% |
| Arrow Electronics (NYSE:ARW) | $4.03 billion | -3.1% |
Velti (Nasdaq:VELT) is trading at $9.61 per share, a significant rise of 11.7%. So far today, 2.6 million shares have changed hands. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio is calculated by dividing the current stock price by the company's book value per share. The P/B ratio for VELT is 2.07, indicating that the stock is trading for more than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. P/B value ratios are particularly useful to value investors, distressed or "vulture" investors, or any other investors purchasing beaten-down securities but are less useful to investors focused on growth stocks, purchasing IPOs, or investing in technology or other "asset-lite" companies. SEE: Using The Price-To-Book Ratio To Evaluate Companies
Energizer Holdings (NYSE:ENR) is currently at $74.76 per share after a dramatic increase of 10.1%. With 1.8 million shares changing hands so far today, the company's volume is 2.8 times its current three-month average. If a stock price makes a big move up or down, volume lets us know the significance of that move. 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. The dividend yield is calculated by dividing a company's dividends per share by its stock price. ENR's dividend yield is 2.4%. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Investment Valuation Ratios: Dividend Yield
American Science & Engineering (Nasdaq:ASEI) has moved up 8.3% and is currently trading at $67.07 per share. So far today, the company's volume is 224,947 shares. This is 6.9 times the current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/sales ratio measures a company's stock market price by its revenues. ASEI's P/S ratio of 2.42 is on the high side. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.
After a decline of 6.7%, BroadSoft (Nasdaq:BSFT) has hit a share price of $39.75. So far today, the company's volume is 774,337 shares. 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. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. BSFT's D/E ratio is 59%. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
After rising 6.2%, F5 Networks (Nasdaq:FFIV) is currently trading at a share price of $110.94. So far today, the company's volume is two million shares, one times the average volume over the last three months. If a stock price moves on high volume, this means that the change is a significant one. 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. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). FFIV is in line with the industry average with a P/E ratio of 30.5. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Can Investors Trust the P/E Ratio?
Arrow Electronics (NYSE:ARW) has decreased to $35.89 per share, a 3.1% fall. This morning, the company's volume is 303,174 shares. This is 0.6 times the average daily volume. 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. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. ARW's capitalization ratio is 34.5%. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. 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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