Why Altisource Portfolio Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of real estate and mortgage portfolio services provider Altisource Portfolio Solutions popped 10% today after its quarterly results topped Wall Street expectations.
So what: The stock has soared over the past six months on optimism over accelerating growth, and today's Q3 results -- earnings increased 33% on a service revenue jump of 52% -- only reinforce that positive sentiment. Management even repurchased 266,300 shares of its common stock during the quarter at an average price of $134.86, giving investors plenty of good vibes over Altisource's financial health, as well.
Now what: Don't expect the operating momentum to slow anytime soon. "Our strong service revenue, net income and cash flow growth provide us with the resources to grow our existing businesses, to invest in new businesses and to repurchase our common stock," said CEO William Shepro in a statement. Of course, with Altisource shares surging to a new 52-week high today, and trading at a P/E of about 30, I'd wait for some of the exuberance to fade before buying into that bull talk.
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The article Why Altisource Portfolio Shares Popped originally appeared on Fool.com.
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