Inphi (IPHI) Showing Signs Of Perilous Reversal Today
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Inphi as such a stock due to the following factors:
- IPHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.3 million.
- IPHI has traded 60,118 shares today.
- IPHI is down 5.3% today.
- IPHI was up 6.7% yesterday.
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More details on IPHI:
Inphi Corporation provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter, and computing markets worldwide. Its analog and mixed signal semiconductor solutions offer high signal integrity at data speeds while reducing system power consumption. Currently there are 10 analysts that rate Inphi a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Inphi has been 543,600 shares per day over the past 30 days. Inphi has a market cap of $1.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.31 and a short float of 6% with 2.62 days to cover. Shares are up 69% year-to-date as of the close of trading on Friday.
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Analysis:
rates Inphi as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- IPHI's very impressive revenue growth greatly exceeded the industry average of 11.0%. Since the same quarter one year prior, revenues leaped by 72.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- IPHI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.53, which clearly demonstrates the ability to cover short-term cash needs.
- INPHI CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INPHI CORP reported poor results of -$0.64 versus -$0.45 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus -$0.64).
- The gross profit margin for INPHI CORP is rather high; currently it is at 63.22%. Regardless of IPHI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IPHI's net profit margin of -1.76% significantly underperformed when compared to 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. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, INPHI CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Inphi Ratings Report.
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