LogMeIn underperforms 82% of the market 11 June 2019

NEWS BITES - NORTH AMERICA

LogMein (NASDAQ:LOGM), the NASDAQ's 23rd largest Technology company by market cap, has decreased $US1.32 (1.8%) from its previous trading session to close at $US70.82. Compared with the NASDAQ-100 Index which rose 11.9 points (0.2%) in the day, the relative price change was -2.0%. The volume was 0.4 times the average daily trading volume of 803,404 shares. In the NASDAQ market of 2,447 stocks and 10 units traded today, LogMeIn's stock has a 4-month relative price strength of 18 indicating it has underperformed 82% of the market. A price fall combined with a low relative strength is a bearish signal. There were 311,099 shares worth $US22 million traded today.

TODAY'S BUZZ

LogMeIn Takes Aim at Cloud Identity with New LastPass Business Lineup: The Wall Street Journal

BULLISH TURNING POINT

Dividend Yield increases to 1.77%

Based on dividends of $US1.25 per share for the trailing twelve months and the last price of $US70.82 the dividend yield is 1.77%, an improvement from 1.73% on the previous day. It is comfortably above Benjamin Graham's benchmark of 2/3rd the triple-A bond yield of 2.15%. The yield of 1.77% is above the benchmark of 1.19% by 58 basis points or 0.58%.

Stock Summary

Day's Range$US70.68-$US73.12
52-Week Range$US69.18-$US112.74
SectorTechnology sector
Market Cap$US3.6 billion
Shares Outstanding50,839,000

Highlights in today's Report:

SECTION 1 TODAY'S BEARISH SIGNALS

SECTION 2 TODAY'S BULLISH SIGNALS

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US70.82):

SECTION 3 THE PAST WEEK

SECTION 4 ONGOING BULLISH PARAMETERS

SECTION 5 ONGOING BEARISH PARAMETERS

SECTION 6 REPORTED BUYING AND SELLING

SECTION 7 SUMMARY FINANCIALS

SECTION 8 CORPORATE PROFILE

SECTION 1 LOGMEIN BEARISH SIGNALS

1.1 Overvaluation [compared with sector average]:

Earnings Yield

+ Earnings yield of 1.0% is below the 10-year bond yield of 2.15%.

Price to Sales

+ Price/Sales of 2.9 [2.3]. We estimate LogMeIn stock is trading at a current year Price/Sales of 1.9 and a forward year Price/Sales of 1.3.

1.2 Downtrend:

Today's Volatility:

+ LogMeIn drops 1.8% on high volatility: Today its volatility (highest price minus lowest price/lowest price) of 3.5% was 1.3 times the average daily volatility of 2.6%, up from 2.1% on Monday and 1.7% on Friday. A fall in the price on high volatility is a bearish signal.

+ The 2.4% premium to 12-month low of $US69.18 against the 37.2% discount to high of $US112.74 suggests the stock continues to push for new lows.

Price/Moving Average Price and MACD:

+ The Price/MAP of 0.85 for LOGM is lower than the Price/MAP for the NASDAQ-100 Index of 1.07.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 72.6 minus the 26-day EMA of 74.8 is negative suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.

+ The price to 50-day EMAP ratio is 0.9, a bearish indicator. In the past 50 days this ratio has been under 0.9 just twice suggesting a support level. The 50-day EMAP has decreased to $US77.27. A decrease is another bearish indicator.

+ In the past 200 days this ratio has been under 0.85, 69 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of $US78.73 is lower than the 200-day MAP of $US82.84, a bearish indicator. The 200-day MAP has decreased to $US82.84. A decrease is another bearish indicator.

Past Week:

+ LogMein is placed 1740/2484 in BuySellSignals' ranking of NASDAQ performers in the past week, a percentile ranking of 30.

+ In the past week, volume was 0.4 times average and the shares were down 2.1%. Tuesday's close price is at a 1.3% discount to its 5-day Volume Weighted Average Price (VWAP) of $US71.76.

Past Month:

+ Falls to Rises: in the past month the number of falls outnumbered rises 14:7 or 2:1.

+ The present value of $US1,000 (PV1000) invested one month ago in LogMeIn is $US922, for a capital loss of $US78.

Slipping Relative Strength (1mo, 3 mo):

+ In the NASDAQ market of 2,447 stocks and 10 units traded today, the stock has a 6-month relative strength of 23 indicating it is trailing 77.0% of the market.

+ Also, the relative strength percentile is slipping at 33 for 3 months and 29 for 1 month.

SECTION 2 LOGMEIN BULLISH SIGNALS

2.1 Undervaluation [compared with sector average]:

Dividend Yield

+ To quote Benjamin Graham: "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 0.8 times the triple-A bond yield of 2.2%.

+ The relative yield of LOGM, defined by its yield of 1.8%, divided by average yield of dividend yielding stocks in the NASDAQ-100 Index of 1.0% is 178.8%. This suggests LogMeIn stock is undervalued in dividend yield terms.

MCap/Total Assets

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.9. Compared with the rest of the market the stock is undervalued.

2.2 Uptrend:

+ Falling open interest with falling price

+ Open Interest Trend

Same day trend: The price decreased 1.8% from $US72.14 to $US70.82; Open interest has sank 5.4% from 6,312 to 5,970. A fall in price combined with a decline in open interest suggests long position holders are being compelled to liquidate their positions and the market is strengthening. This is a bullish signal awaiting a turning point when long position holders have completed their selling.

DurationOpen Interest change %Price change %Interpretation
1-day-5.4-1.8Market is Strengthening

+ Put Call Contracts

The Put/Call ratio has declined from 2.399 to 2.187 suggesting an uptrend.

Put ContractsCall ContractsPut/Call ratio
Today4,0971,8732.187
Previous day4,4551,8572.399

+ Top traded put options [1 contract is 100 shares]

Exercise PriceExercise DateOption PriceChange %Contracts Traded
$US70.0June 21, 2019$US1.081.863

2.3 High Price Performance Indicators and rank of LogMeIn in the NASDAQ market:

DescriptionLOGM ValueRank In Market
Today's Trading Turnover$US22 millionIn Top Quartile
MCap$US3.6 billionIn Top Quartile

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US70.82):

SECTION 3 THE PAST WEEK

3.1 Snapshot: LogMeIn stock was down $US1.52 or 2.1% in the past week. Volume in the week was 0.4 times average trading of 4 million shares. It underperformed the NASDAQ-100 index in 4 out of 5 days.

DayLogMeInClose price [USD]Price change %Relative change %Comment
MondayIn its biggest weekly gain in 6 months72.140.1-1.0
FridayInches higher, resistance at 12-day EMA72.050.7-1.2
ThursdayDecreases71.53-0.9-1.7Steepest Fall
WednesdayFalls in weak trading with rising open interest72.18-0.2-1.0
TuesdayPut call ratio decreases 1.8%, stock lifts 3.9%72.343.91.2Top Rise

3.2 Corporate Wires: LogMeIn (LOGM) issued one Release in the past week.

June 05: LogMeIn Unveils Expanded Bold360 AI-Powered Customer Engagement Suite

The new Bold360 family enriches every customer touch point across digital and physical properties, from first interaction through post-sale support

BOSTON, June 05, 2019 -- Today, LogMeIn (Nasdaq: LOGM) announced the new Bold360 suite of products, enabling businesses around the world to create next-level customer experiences (CX) wherever customers need it most.

3.3 Stock Buzz: Past Week

News DateHeadlinePublisher
Jun 07Kennedy Capital Management Inc. Decreases Holdings in LogMeIn Inc (LOGM)dispatchtribunal.com
Jun 05LogMeIn Unveils Expanded Bold360 AI-Powered Customer Engagement SuiteMarkets Insider

SECTION 4 ONGOING BULLISH PARAMETERS

4.1 Performance:

+ Net profit margin has averaged 5.7% in the last 3 years. This is better than the sector average of 5.4% and suggests a high margin of safety.

4.2 Growth:

+ Over the last 3 years average annual compound growth rate of earnings per share was 16.3%. This is considered moderate.

4.3 Low Debt Indicators:

+ Total Liabilities/EBITDA of 3.8 is comfortably below the Joseph Piotroski benchmark of 5.

DescriptionValueRank In Market
Debt to Equity0.1In Top Quartile

4.4 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the real rate of return has averaged 19.1%. The Moving Annual Return has been positive in 2 out of 5 years.

LOGMClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
Jun 1170.821.25(33.0)1.2(31.8)
1 Yr ago105.71.1(2.8)1(1.8)
2 Yrs ago108.81.7483.22.986.2
3 Yrs ago59.38-(4.3)-(4.3)
4 Yrs ago62.06-47.4-47.4

Close 5 years ago $US42.11

4.5 Present Value of USD1,000 invested in LogMeIn since listing ten years ago

- LogMeIn was first listed on July 01, 2009 at $US16.0; after adjustments the price was $US19.12.

- The present value of USD1,000 (PV1000) invested in LogMeIn on the date of listing is $US3,867, including a capital gain of $US2,703 and dividend reinvested of $US164.

- Multiplier in USD = 3.867x

- Annualized Total Shareholder Returns (TSR) in USD= 14.6%

4.6 Increased ADVT past five years

Avg. Daily Volume Traded 12 months ended Jun 11, thousand shares

YearADVT
2019803.4
2018549.0
2017555.4
2016282.6
2015255.7

In the past five years, Average Daily Volume of Trading (ADVT) has increased 214.3% to 803,404 shares.

4.7 Increased VWAP

Past five years, 12 months ended Jun 11 (USD)

YearHigh PriceVWAPLow Price
2019112.7484.5469.18
2018132.45113.72100.78
2017121.0295.7255.44
201672.0558.233.43
201566.8747.5437.31

In the past five years Volume Weighted Average Price (VWAP) has increased by 77.8% to $US84.54.

4.8 Increased Average Daily Turnover

Past five years, 12 months ended Jun 11 (USD million)

YearAverage Daily Turnover
201967.9
201862.9
201753.4
201616.7
201512.3

In the past five years, average daily share turnover has increased 451.4% to $US67.9 million. This suggests increased liquidity.

4.9 Decrease in Insider Selling

In the past 5 years a total of 1,392,967 LogMeIn shares worth $US110 million were sold by insiders. Based on a dynamic start date of 5 years ago, insider selling has averaged 278,593 shares per year. In the past year, insiders sold 192,790 shares, a decrease of 11.2% from the previous year.

SECTION 5 ONGOING BEARISH PARAMETERS

5.1 Performance:

+ Return on Equity 2.5% [5.5%].

+ Return on Assets 1.9% [2.2%].

+ Return on Capital Employed 2.4% [6.2%].

+ As per the Du Pont analysis, Return on Equity [ROE] is less than stellar at 2.5%; a deterioration from 3.1% last year. ROE is computed as net profit margin of 6.2% times asset turnover [sales/assets] of 0.31 times leverage factor [total assets/shareholders' equity] of 1.3.

YOY Deterioration in ROE and Profit Margin

Du Pont AnalysisROEProfit MarginAsset TurnoverEquity Multiplier
Current Year2.56.20.311.3
Previous Year3.110.10.261.2

5.2 Growth:

Quarterly Trend in Revenue, Net Profit and Net Profit Margin:

+ Revenue growth has shown signs of deterioration in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Mar 19 [Q1]-0.8--2.9
Dec 18 [Q4]0.499.68.2
Sep 18 [Q3]1.1944.1
Jun 18 [Q2]9.5-77.92.1

5.3 Low Performance Indicator and rank of LogMeIn in the Usnasdaq market:

DescriptionValueRank In Market
Return on Equity [ROE] %2.5In Bottom 9%

SECTION 6 LOGMEIN REPORTED BUYING AND SELLING

6.1 Institutional Buying and Selling Quarter Ended March 31

Total reported Institutional buying = 6,227,896 shares

Total reported Institutional selling = 6,800,986 shares

Net reported institutional selling = 573,090 shares

6.2 Reported Holdings of Institutions as at Mar 31, 2019

Total = 41,254,354 shares

Market Value = $US3.3 billion

Institutions hold 81.1% of Issued Shares.

SECTION 7 LOGMEIN SUMMARY FINANCIALS

7.1 Dividend History

+ Trailing 12 months dividend for the 12 months ended June 11 has deteriorated from $US1.74 in 2017 to $US1.25 in 2019.

7.2 Financials Summary

Year endedDec 2018Dec 2017Dec 2016
Sales (USD)1.2B989.8M337.3M
Pretax (USD M)80.8(12)3.2
Net (USD M)74.499.52.6
EPS (USD)1.441.970.1

+ Net profit was down 25.3% from US$99.5 million in 2017 to US$74.4 million in 2018.

+ Earnings Per Share (EPS) was down 26.9% from $US1.97 to $US1.44.

SECTION 8 CORPORATE PROFILE

8.1 Activities

LogMeIn, Inc. provides SaaS-based, on-demand, remote-connectivity, collaboration and support solutions to small and medium-sized businesses, or SMBs, IT service providers, mobile carriers, and consumers.

8.2 Top Management

The chairman is Michael K. Simon, the chief executive officer is William R. Wagner and the chief financial officer is Edward K. Herdiech.

8.3 Issued Capital and MCap

Based on 50,839,000 issued shares the market capitalisation is $US3.6 billion.

8.4 Vanguard Total World Stock ETF 7530:

The stock was one of 7530 global stocks selected by Vanguard Total World Stock ETF (VT). As at Apr 30, 2019, the Vanguard Total World Stock ETF held 17,100 shares worth $US1,410,793 or 0.01% by value of the ETF's portfolio [Ranked 1774 out of 7530 by value and 238 out of 677 for NASDAQ].

COMPANY IDENTIFIERS

Contact: +1 781 638-9050

Physical Address: 320 Summer Street, Boston, MA,02210

State/Province/Country: United States

Country of Incorporation: United States

Industry [NAICS]: 511210

Exchange: NASDAQ

Economic Sector: Technology

ISIN: US54142L1098

O:LOGM; LOGM.O

PermID: 4297016604

RIC: LOGM.O

CIK: 1420302

CUSIP: 54142L109

Logmein Inc, Logmein, Inc

Source: www.BuySellSignals.com