Look Into this Small Cap, Online Video Ad Network Before Earnings

Tremor Video TRMR is a small cap company worth exploring, with strong insider an institutional buying after their IPO in June.

The company is expected to report their second round of public earnings after the close on Thursday. Analysts are expecting a two cent loss with revenue at 36.26 million. Oppenheimer, Canaccord Genuity, Jefferies, and Credit Suisse all have buy ratings on the stock.

Business

Tremor Video is a video advertising company that targets consumers on internet connected devices. As stated in their S-1, “Our proprietary technology, VideoHub, analyzes in-stream video content, detects viewer and system attributes, and leverages our large repository of stored data to optimize video ad campaigns for brand-centric metrics.”

With internet video advertising expected to grow by almost 30 percent from 2012 to 2016, highlights of the company’s plan to gain market share include mobile penetration, relationships with advertising agencies, and data generated via 20 billion ad impressions.

Related: Consider This Small Cap Stock For The Growing Home Services Sector

Financials

Because the company is recently listed, data on past performance is somewhat limited. But aking a look at the last reported quarter, ended June 30th, results are impressive.

Year over year, revenue grew 40.7 percent -- with EPS moving from a $0.65 loss to $0.04 loss. What is especially impressive is that almost all costs decreased as a percentage of sales over the period. The real value of general and administrative costs actually fell over the year.

Other highlights from the report include 32.144 million in cash, or $0.65 per share, total assets of 133.6 million, and liabilities of 38.5 million.

As noted earlier, analysts are expecting a two cent loss for the most recently ended quarter from 36.26 million of revenue. For the same quarter last year, revenue was 30.2 million and the company reported a 1.675 million dollar loss (comparable to a $0.034 loss per share).

Insiders and Institutions

During the last week of August, midway through the most recently ended quarter, the company CEO, CFO, president and two directors all purchased shares. Per Tuesday’s close, these shares have a market value of $327,630.

Institutions have begun building their positions this quarter, with 5.4 million of 49.54 total shares purchased. Mutual funds added 2.2 million shares.

Shares of Tremor Video closed at $10.05 Tuesday. Analyst price targets range from $12.00 to $14.00. A series of upgrades and downgrades are likely to take place after the company reports earnings Thursday.