Ellie Mae (ELLI) Lower as Rally Gets Overextended
Tweet
Share
E-mailGet Alerts ELLI Hot Sheet
Join SI Premium – FREE
Share of Ellie Mae, Inc. (NYSE: ELLI) are lower for the second day in a row. The stock tapped $29 per share last Friday, but has since declined sharply to $24 per shares. Ellie Mae, Inc. is a provider of on-demand automation solutions for the mortgage industry. Last month analysts at Needham & Company initiated coverage on Ellie Mae with a Buy rating.
Analyst Michael Huang said, "We see ELLI as an under-the-radar, secular growth SaaS story dominating a large vertical market (residential mortgage). Thus it's well leveraged to stabilizing residential mortgage volumes and to the ongoing and inevitable overhaul of a notably inefficient, paper-based, error-prone, fragmented, and increasingly regulated residential mortgage industry."
While Ellie Mae might be an "under the radar" stock to some, for others it has been a virtual cash cow. Despite the recent decline in the stock, shares of Ellie Mae are higher by a whopping 335 percent year-to-date. That might explain the recent bout of toppiness.
On August 2nd, Barclay's Raimo Lenschow said "While we expect Q2 to continue to support the stock's excellent performance, at least near term, we highlight that upside surprises may be more limited as volume assumptions (and hence forecasts) have possibly moved up to a more accurate level for 2012."
From a trading perspective, it remains to be seen if the recent decline signals a near-term top is in place, but some traders think the stock may take another shot at $29 after a period of consolidation this week. In any case, this might be a stock worth following in the coming days and weeks.
Analyst Michael Huang said, "We see ELLI as an under-the-radar, secular growth SaaS story dominating a large vertical market (residential mortgage). Thus it's well leveraged to stabilizing residential mortgage volumes and to the ongoing and inevitable overhaul of a notably inefficient, paper-based, error-prone, fragmented, and increasingly regulated residential mortgage industry."
While Ellie Mae might be an "under the radar" stock to some, for others it has been a virtual cash cow. Despite the recent decline in the stock, shares of Ellie Mae are higher by a whopping 335 percent year-to-date. That might explain the recent bout of toppiness.
On August 2nd, Barclay's Raimo Lenschow said "While we expect Q2 to continue to support the stock's excellent performance, at least near term, we highlight that upside surprises may be more limited as volume assumptions (and hence forecasts) have possibly moved up to a more accurate level for 2012."
From a trading perspective, it remains to be seen if the recent decline signals a near-term top is in place, but some traders think the stock may take another shot at $29 after a period of consolidation this week. In any case, this might be a stock worth following in the coming days and weeks.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MaxLinear (MXL) PT Raised to $100 at Needham
- Crocs (CROX) PT Raised to $150 at Needham
- Vicor Corporation (VICR) PT Lowered to $320 at Needham
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Needham & CompanySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
