Stocks To Watch (MITK, CAVM, SBAC, GWRE)
Mitek Systems, Inc. (NASDAQ:MITK) shares declined 19.22% on an unusual volume of 3.82 million shares, around 6x times its average traded volume and closed at $9.37 in the previous trading session. On March 26, 2012, Needham & Company said that they had initiated coverage on Mitek Systems with a Buy and price target at $18.00.
The analyst at Needham feels that Mitek has established first-mover advantage in the emerging mobile check deposit market through its proprietary and patented technology. Including opportunities in adjacent markets such as mobile bill pay and other mobile financial and business transactions, the analysts estimate Mitek’s total addressable market (TAM) is well north of $1 billion.
Cavium Inc (NASDAQ:CAVM) issued first quarter of 2012 revenue guidance below the analysts estimate. As a result the stock of the company fell 1.20% and closed at $30.57 in the previous trading session.
The company expects first quarter of 2012 revenue to be approximately 6% to 7% lower than revenue in the fourth quarter of 2011 and first quarter earnings per share (EPS) to be lower than previously expected to be between $0.06-$0.07. The Company reported revenues of $56 million in the fourth quarter of 2011. Analysts on an average are expecting the company to report revenue of $57 million and EPS of $0.07 for the first quarter of 2012.
SBA Communications Corporation (NASDAQ:SBAC) stock gained 0.20% to $50.91 in the previous trading session. The company yesterday announced that it has completed the acquisition of over 2,300 Towers and Certain DAS Assets and paid $850 million in cash and issued 5.25 million shares of its Class A common stock, implying a total transaction value of $1,093 million based on SBAC’s closing price of $46.27 on February 17, 2012.
The company after yesterday’s close also announced the announced the underwritten public offering of 5.25 million shares of its Class A common stock by certain selling shareholders, which represent all the shares that were originally issued in connection with the closing of SBA’s recent Mobilitie acquisition.
Guidewire Software Inc (NYSE:GWRE) shares fell 2.53% and closed at $30.0 in the previous trading session after the company filed for a secondary offering of up to 7.5 million shares just after two months, the company went public in a well-received IPO. The company will sell 400,000 shares while certain stockholders would sell 7.1 million shares.