Ellie Mae (ELLI +4.4%) rallies after SA contributor Shareholders Unite argues the...

|About: Ellie Mae, Inc. (ELLI)|By:, SA News Editor

Ellie Mae (ELLI +4.4%) rallies after SA contributor Shareholders Unite argues the mortgage-processing software maker's post-earnings selloff is overdone. Investors have long been aware of declining mortgage refi activity and fewer conversions of traditional software customers to cloud subscriptions (the focus of a recent William Blair downgrade), the author declares. Meanwhile, top-line growth is still healthy, and rising margins are evidence of significant operating leverage.