Freescale Semiconductor (FSL) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Freescale Semiconductor as such a stock due to the following factors:
- FSL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.0 million.
- FSL has traded 431,611 shares today.
- FSL is trading at 2.30 times the normal volume for the stock at this time of day.
- FSL is trading at a new high 3.01% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on FSL:
Freescale Semiconductor, Ltd. provides embedded processors worldwide. FSL has a PE ratio of 34. Currently there are 3 analysts that rate Freescale Semiconductor a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Freescale Semiconductor has been 1.2 million shares per day over the past 30 days. Freescale Semiconductor has a market cap of $11.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.91 and a short float of 5.1% with 3.38 days to cover. Shares are up 42.3% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Freescale Semiconductor as a
. The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.
Highlights from the ratings report include:
- The gross profit margin for FREESCALE SEMICONDUCTOR LTD is rather high; currently it is at 52.05%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FSL's net profit margin of 7.14% significantly trails the industry average.
- Compared to its closing price of one year ago, FSL's share price has jumped by 72.10%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- Net operating cash flow has decreased to $158.00 million or 19.38% when compared to the same quarter last year. Despite a decrease in cash flow of 19.38%, FREESCALE SEMICONDUCTOR LTD is in line with the industry average cash flow growth rate of -21.80%.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Semiconductors & Semiconductor Equipment industry average. The net income has significantly decreased by 36.0% when compared to the same quarter one year ago, falling from $125.00 million to $80.00 million.
- You can view the full Freescale Semiconductor Ratings Report.
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