Dougherty & Co Downgrades Ellie Mae (ELLI) to Neutral

November 1, 2013 12:41 PM EDT
Get Alerts ELLI Hot Sheet
Price: $83.88 -0.27%

Rating Summary:
    11 Buy, 7 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Dougherty & Co downgraded Ellie Mae (NYSE: ELLI) from Buy to Neutral. Analyst Raghavan Sarathy moved to the sidelines, as volume declines hit sooner than expected, and the company faces further headwinds next year.

"While we had been cautious on the stock recently given the runup in the stock and the anticipated volume headwinds next year, the volume decline appears to have hit Ellie sooner than anticipated," said Sarathy.

"With 3Q miss and a reduction to full year outlook, the stock is already down more than 15% in the after‐hours market. That said, Ellie will face stiffer headwinds next year from the continued yr./yr. decline in loan origination volume which will lead to more volatility in the business, and further, the company indicated that it plans to continue investing, which will likely pressure margin," he added.

For an analyst ratings summary and ratings history on Ellie Mae click here. For more ratings news on Ellie Mae click here.

Shares of Ellie Mae closed at $28.90 yesterday.

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