Mentor Graphics (MENT): Heavy Pre-Market Activity
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Mentor Graphics as such a stock due to the following factors:
- MENT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.3 million.
- MENT traded 119,445 shares today in the pre-market hours as of 8:13 AM, representing 19.7% of its average daily volume.
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More details on MENT:
Mentor Graphics Corporation provides electronic design automation software and hardware solutions to automate the design, analysis, and testing of electro-mechanical systems, electronic hardware, and embedded systems software. The stock currently has a dividend yield of 0.8%. MENT has a PE ratio of 22. Currently there are 4 analysts that rate Mentor Graphics a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Mentor Graphics has been 734,500 shares per day over the past 30 days. Mentor Graphics has a market cap of $3.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.70 and a short float of 8.5% with 13.93 days to cover. Shares are up 26.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Mentor Graphics as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 17.3%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MENT's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 120.2% when compared to the same quarter one year prior, rising from $14.17 million to $31.21 million.
- You can view the full Mentor Graphics Ratings Report.
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