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Stalled After Quarter Missed Investment System's Minimum Guideline - Wednesday, May 27, 2020
Sapiens Intl Corp (SPNS -$0.13 or -0.54% to $23.92) pulled back today with +27% above average volume. It encountered distributional pressure recently, yet found prompt support at its 200 DMA line.
Recently the company reported Mar '20 quarterly earnings +18% on +18% sales revenues versus the year ago period, below the +25% minimum guideline (C criteria), raising fundamental concerns. SPNS was highlighted in yellow with pivot point cited based on its 1/24/20 high plus 10 cents in the 5/11/20 mid-day report (read here). It powered to a new 52-week high with a big volume-driven gain, but it erased much of the early gain and ended in the lower third of its intra-day range, an indication that it was encountering distributional pressure. It failed to produce subsequent gains above the pivot point backed by at least +40% above average volume to clinch a convincing technical buy signal.
SPNS was last shown in this FSU section on 5/11/20 with an annotated graph under the headline, "Encountered Distributional Pressure After Hitting New High". Through the Dec '19 quarter it had posted 5 consecutive quarterly comparisons above the +25% minimum guideline (C criteria). This Israel-based Computer - Tech Services firm's annual earnings (A criteria) history included a downturn in FY '17, a noted fundamental flaw, however, it has a 91 Earnings Per Share rating.
There is a small supply of only 50.2 million shares outstanding (S criteria) which can contribute to greater price volatility in the event of institutional buying or selling. The number of top-rated funds owning its shares rose from 104 in Jun '19 to 126 in Mar '20, a reassuring sign concerning the I criteria. It has a Timeliness Rating of B and an Accumulation/Distribution Rating of C+.
Charts courtesy of www.stockcharts.com
Encountered Distributional Pressure After Hitting New High - Monday, May 11, 2020
Sapiens Intl Corp (SPNS +$0.46 or +1.80% to $26.03) was highlighted in yellow with pivot point cited based on its 1/24/20 high plus 10 cents in the earlier mid-day report (read here). It powered to a new 52-week high with today's big volume-driven gain, but it erased much of the early gain and ended in the lower third of its intra-day range, an indication that it was encountering distributional pressure. Subsequent gains above the pivot point backed by at least +40% above average volume are needed to clinch a convincing technical buy signal.
Keep in mind that it is due to report Mar '20 quarterly earnings news on 5/14/20. Volume and volatility often increase near earnings news. It last reported earnings +31% on +18% sales revenues for the Dec '19 quarter versus the year ago period, its 5th consecutive quarterly comparison above the +25% minimum guideline (C criteria). This Israel-based Computer - Tech Services firm's annual earnings (A criteria) history included a downturn in FY '17, a noted fundamental flaw, however, it has a 91 Earnings Per Share rating.
There is a small supply of only 50.2 million shares outstanding (S criteria) which can contribute to greater price volatility in the event of institutional buying or selling. The number of top-rated funds owning its shares rose from 104 in Jun '19 to 129 in Mar '20, a reassuring sign concerning the I criteria. It has a Timeliness Rating of B and an Accumulation/Distribution Rating of B-.
Charts courtesy of www.stockcharts.com
