Himax Technologies (HIMX) Is Weak On High Volume Today
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Himax Technologies as such a stock due to the following factors:
- HIMX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.2 million.
- HIMX has traded 2.1 million shares today.
- HIMX is trading at 11.45 times the normal volume for the stock at this time of day.
- HIMX is trading at a new low 9.02% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 HIMX:
Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. The company operates through Driver IC and Non-Driver Products segments. The stock currently has a dividend yield of 1.3%. HIMX has a PE ratio of 25. Currently there are 6 analysts that rate Himax Technologies a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Himax Technologies has been 3.0 million shares per day over the past 30 days. Himax has a market cap of $1.6 billion and is part of the technology sector and electronics industry. Shares are up 0.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Himax Technologies as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Semiconductors & Semiconductor Equipment industry average. The net income increased by 4.2% when compared to the same quarter one year prior, going from $12.57 million to $13.09 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- The gross profit margin for HIMAX TECHNOLOGIES INC is currently lower than what is desirable, coming in at 28.08%. Regardless of HIMX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.25% trails the industry average.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, HIMAX TECHNOLOGIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Himax Technologies Ratings Report.
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