Silver lining to ServiceSource International Inc. (NASDAQ:SREV)’s dark cloud?


Shares of ServiceSource International, Inc. (NASDAQ:SREV) are currently poised at -15.42% from the open today and are trading at $3.29. More than 1,142,400 shares have exchanged hands compared to an average trading volume of 273.09K. At the current pps, the market cap stands at $288.89M. The stock prices of ServiceSource International, Inc. (NASDAQ:SREV) are currently trading at -47.36% below its 52 week high and -6.00% above its 52 week low.

ServiceSource International, Inc. (NASDAQ:SREV) has been in the news for all the right reasons. Recently, ServiceSource International, Inc. (NASDAQ:SREV) announced that CEO Christopher M. Carrington will join two of the biggest names in customer success, Gainsight CEO Nick Mehta and TSIA CEO J.B. Wood, to host and present at a half-day Executive Symposium, “Win the Race to Keep and Grow Customers” at the Boston Four Seasons Hotel from 1-5 p.m. ET on April 11.

ServiceSource International, Inc. (NASDAQ:SREV) is all set to announce its earnings on May 08/a. As per Zack’s analyst ratings, ServiceSource International, Inc. (NASDAQ:SREV) currently has an average brokerage rating of 3. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:SREV) is $5.25 with a high of $5.25 and a low of $5.25.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 100% Sell with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 3.61 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 3.90 is also higher than the current trading price depicting a bearish trend overall.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 31.71 suggesting a bearish price action.

As such, while we believe ServiceSource International, Inc. (NASDAQ:SREV) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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.

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