Matrix USA (little-known stock analysts) initiated coverage of Kenexa today, with a “sell” rating. (You don’t see this all too often.) Kenexa’s stock is down sharply today.
Does this mean something’s gone bad at Kenexa?
No, not necessarily. Matrix’s managing director, Ivan Feinseth, tells me that Kenexa’s actually doing quite well. However, he says, the stock is just a bit pricey by his measures, particularly when compared to Kenexa’s peer group.
Kenexa’s trading at about $24 a share now, and Feinseth believes its “intrinsic value” is closer to $21.