Bankrate (RATE) NewsBite - Bankrate Earnings Don't Impress Investors

Posted on Friday, May 02, 2008 1:52 PM

Bankrate Inc. (RATE) opened at 48.98. So far today, the stock has hit a low of 45.13 and a high of 49.15. RATE is now trading at 48.00, down 5.06 (-10.33%). The stock hit its 52 week high of 57.32 in February and set its 52 week low of 33.64 in August. RATE has been steadily rising for the past year. Bankrate reported yesterday evening its first quarter profit jumped 26% to $6.8 million as more consumers visited the company's financial information Web sites. The company posted earnings of 46 cents per share on sales of $42.5 million, while analyst predicted earnings of 45 cents per share on revenue of $39 million. However, this was not enough to impress investors and a Needham analyst downgraded the stock to "Hold" from "Buy," saying he sees little that will drive the stock higher. Technical indicators for the stock are neutral but slightly deteriorating. If you’re looking for a hedged play on this stock, consider an August bear-call credit spread above the $60 range. RATE stock could rise up to 25% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]