Qumu Corp (NASDAQ: QUMU) Could be Rising Cause of these SEC Filings…

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Qumu Corp (NASDAQ: QUMU) shares are up significantly today. The stock was up over 30% by 12:30 PM ET. At that time, traders exchanged 421,816 shares, over 5.66 times the 30-day average daily trading volume.

Qumu Corp. is a software company that provides the necessary tools to businesses in order to create, manage, secure, deliver and measure the success of their videos. The company creates innovative solutions, allowing for companies to engage and empower employees, partners and clients.

There are no news announcements on the software application company today. However, there were some filings worth noting about that occured on Friday. More specifically, Palogic Value Management, LP disclosed a 9.9% stake. Palogic Value Management has a shared voting power of 909.1K

Notable Filings

On Friday, two Form 4 filings were submitted by Vern Hanzlik, President and CEO of Qumu Corp, and Peter J. Goepfrich, CFO of Qumu Corp. The SEC Form 4 is an amendment to Form 3 report of a sale or acquisition of registrant’s securities. That said, the Form 4 must be filed by the tenth day of the month following the month when the transactions occurred.

In the Form 4 filing, Qumu CEO and President Vern Hanzlik acquired 75K stock options with an exercise price of $1.90, exercisable on March 8, 2018, with an expiration date on March 8, 2024.

Additionally, Qumu CFO acquired 50K stock options with the same exercise price, exercisable date and expiration date as those in Qumu CEO and President’s Form 4 filing.

Recent Performance & Earnings

The stock was down over 7%, over the past trading week, underperfoming the industry by 8.30%. Additionally, the stock was  down -14.09%, while the software application industry was up 1.93% over the last month. Moreover, the stock underperformed the industry by over 40% over the past three months.

Qumu Corp. Stock Performance
Source: TradingView

Qumu reported its fourth quarter and full year 2016 results a few weeks ago, and the company reported fourth quarter revenue of $9.3M, which was below its revenue of $10.1M in the same period in the previous fiscal year. Moreover, it had a net loss of $(0.04) per diluted share, compared to a loss of $(0.50) per diluted share in the fourth quarter of 2015. For the full 2016 fiscal year, it had revenue of $31.7M and a loss of $(1.23) per diluted share, compared to $34.5M and a loss of $(3.11) per diluted share during the 2015 fiscal year. The company’s revenues shrunk, while its diluted EPS grew slightly year over year. However, the company still operated at a loss.

Qumu Corp Key Figures

Here are some Key figures that traders are paying attention to:

  • QUMU had a market cap of $22,912,749, as of March 10, 2017.
  • Qumu Corp had 9,178,684 shares outstanding and a short interest of 11,737 shares, or 0.13% shares short.
  • Qumu Corp had a trailing 12-month EPS of $-1.21, and it had revenue of $32,480,000.
  • QUMU reported total liabilities of $17,563,000 and total equity of $19,248,000 in its recent financial statements.
  • Qumu Corp had a debt/equity ratio of 91.24%, indicating Qumu Corp has been taking some debt.

Bull Case

Now, there are multiple reasons why traders might want to either get long or short QUMU. On the bull case, we have officers and directors accumulating stock options with a right to buy in March 2018, indicating confidence in the company. Moreover, the company is trading at more attractive valuations than the software application industry average. QUMU had a price to book ratio of 0.9, while the industry average was 6.2. It had a price-to-sales ratio of 0.5, while the stockware application industry average was 5.3.

The stock has also been significantly underperforming the market and its industry, and investors and market participants may consider this as a contrarian trade.

Bear Case

For the bear case, the company had a trailing 12 month (TTM) return on equity of -56.8%, while the industry average was 8.3%. Additionally, it had a TTM return on assets of -33.6%, while the industry average 4.1%. Consequently, shareholders may be bearish on the company’s ability to turn a profit, while some of its competitors have positive earnings.

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