InvenSense (INVN) Highlighted As Weak On High Volume
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified InvenSense as such a stock due to the following factors:
- INVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.1 million.
- INVN has traded 137,032 shares today.
- INVN is trading at 2.02 times the normal volume for the stock at this time of day.
- INVN is trading at a new low 3.02% 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 INVN:
InvenSense, Inc. designs, develops, markets, and sells micro-electro-mechanical system (MEMS) gyroscopes for motion tracking devices in consumer electronics. INVN has a PE ratio of 104. Currently there are 5 analysts that rate InvenSense a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for InvenSense has been 1.6 million shares per day over the past 30 days. InvenSense has a market cap of $1.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.19 and a short float of 18.5% with 6.43 days to cover. Shares are down 22.5% year-to-date as of the close of trading on Monday.
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Analysis:
rates InvenSense 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 compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 24.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.11, which clearly demonstrates the ability to cover short-term cash needs.
- INVENSENSE INC 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, INVENSENSE INC swung to a loss, reporting -$0.02 versus $0.07 in the prior year. This year, the market expects an improvement in earnings ($0.59 versus -$0.02).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market on the basis of return on equity, INVENSENSE INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- INVN has underperformed the S&P 500 Index, declining 22.45% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full InvenSense Ratings Report.
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