M/A-COM Technology Solutions Holdings (MTSI) Is Weak On High Volume Today
Trade-Ideas LLC identified
M/A-COM Technology Solutions Holdings
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified M/A-COM Technology Solutions Holdings as such a stock due to the following factors:
- MTSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.3 million.
- MTSI has traded 259,907 shares today.
- MTSI is trading at 8.01 times the normal volume for the stock at this time of day.
- MTSI is trading at a new low 3.14% 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 MTSI:
M/A-COM Technology Solutions Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and markets semiconductors and modules for use in wireless and wireline applications across the radio frequency, microwave, and millimeterwave spectrum. MTSI has a PE ratio of 166. Currently there are 7 analysts that rate M/A-COM Technology Solutions Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for M/A-COM Technology Solutions Holdings has been 359,700 shares per day over the past 30 days. M/A-COM Technology has a market cap of $1.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.02 and a short float of 29.8% with 13.97 days to cover. Shares are up 0.8% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates M/A-COM Technology Solutions Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 17.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 578.4% when compared to the same quarter one year prior, rising from $1.18 million to $8.03 million.
- The gross profit margin for M/A-COM TECHNOLOGY SOLUTIONS is rather high; currently it is at 56.55%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MTSI's net profit margin of 6.08% significantly trails the industry average.
- MTSI's debt-to-equity ratio of 0.96 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.60 is very high and demonstrates very strong liquidity.
- Powered by its strong earnings growth of 650.00% and other important driving factors, this stock has surged by 39.49% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full M/A-COM Technology Solutions Holdings Ratings Report.
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