Zacks Investment Research Downgrades Servicesource International (SREV) to Strong Sell

Zacks Investment Research downgraded shares of Servicesource International (NASDAQ:SREV) from a hold rating to a strong sell rating in a report issued on Thursday.

According to Zacks, “ServiceSource provides a suite of cloud applications for service revenue management. The Company provides end-to-end management and optimization of the service contract renewals process, including data management, quoting, selling and service revenue business intelligence. Its solution is based on the proprietary Service Revenue Intelligence Platform, a data warehouse that incorporates transactional, analytical and industry data gathered from over two million service renewal transactions. The Company’s offering finds its application in all industries. ServiceSource is headquartered in San Francisco, California. “

SREV has been the subject of several other research reports. ValuEngine raised Servicesource International from a sell rating to a hold rating in a research report on Wednesday, January 2nd. B. Riley set a $2.00 target price on Servicesource International and gave the stock a buy rating in a research report on Thursday, November 8th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the company. Servicesource International presently has an average rating of Hold and an average target price of $1.25.

NASDAQ:SREV traded up $0.04 on Thursday, hitting $1.04. 1,155 shares of the stock were exchanged, compared to its average volume of 357,895. The firm has a market capitalization of $105.70 million, a PE ratio of -25.50 and a beta of 1.89. The company has a debt-to-equity ratio of 0.32, a current ratio of 3.91 and a quick ratio of 3.91. Servicesource International has a fifty-two week low of $0.92 and a fifty-two week high of $4.47.

Servicesource International (NASDAQ:SREV) last announced its quarterly earnings results on Wednesday, February 20th. The technology company reported $0.03 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.03. The company had revenue of $61.47 million during the quarter, compared to analyst estimates of $61.10 million. Servicesource International had a negative return on equity of 4.98% and a negative net margin of 10.44%. As a group, research analysts anticipate that Servicesource International will post -0.02 earnings per share for the current year.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. raised its position in shares of Servicesource International by 10.8% during the 2nd quarter. BlackRock Inc. now owns 5,188,090 shares of the technology company’s stock worth $20,443,000 after purchasing an additional 506,561 shares during the period. Northern Trust Corp raised its position in shares of Servicesource International by 3.7% during the 2nd quarter. Northern Trust Corp now owns 895,825 shares of the technology company’s stock worth $3,529,000 after purchasing an additional 31,841 shares during the period. Russell Investments Group Ltd. raised its position in shares of Servicesource International by 33.1% during the 3rd quarter. Russell Investments Group Ltd. now owns 1,734,838 shares of the technology company’s stock worth $4,944,000 after purchasing an additional 431,606 shares during the period. Prescott Group Capital Management L.L.C. raised its position in shares of Servicesource International by 11.3% during the 3rd quarter. Prescott Group Capital Management L.L.C. now owns 1,581,152 shares of the technology company’s stock worth $4,506,000 after purchasing an additional 160,397 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in shares of Servicesource International by 35.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,082,413 shares of the technology company’s stock worth $3,085,000 after purchasing an additional 283,678 shares during the period. 75.84% of the stock is owned by hedge funds and other institutional investors.

About Servicesource International

ServiceSource International, Inc provides recurring revenue management, maintenance, support, and subscription for technology and technology-enabled healthcare and life sciences companies. The company's solutions include outsourced sales operations, customer onboarding, customer success management, cross-sell and upsell, warranty conversion, account-based marketing, and channel recruitment and enablement, as well as renewals management, including the sale of maintenance and support service contracts for the products used by its clients' end-users.

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