Rambus (RMBS) Is Today's Strong On High Volume Stock
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rambus as such a stock due to the following factors:
- RMBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.8 million.
- RMBS has traded 143,627 shares today.
- RMBS is trading at 7.16 times the normal volume for the stock at this time of day.
- RMBS is trading at a new high 4.14% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 RMBS:
Rambus Inc. manufactures and sells semiconductor and IP products, spanning memory, and interfaces to security, smart sensors, and lighting industries in South Korea and internationally. RMBS has a PE ratio of 7. Currently there are 2 analysts that rate Rambus a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Rambus has been 670,800 shares per day over the past 30 days. Rambus has a market cap of $1.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.57 and a short float of 10.8% with 16.71 days to cover. Shares are up 10.5% year-to-date as of the close of trading on Monday.
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Analysis:
rates Rambus as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- RMBS's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.99, which clearly demonstrates the ability to cover short-term cash needs.
- 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 Semiconductors & Semiconductor Equipment industry and the overall market, RAMBUS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $16.26 million or 8.10% when compared to the same quarter last year. In addition, RAMBUS INC has also modestly surpassed the industry average cash flow growth rate of 2.87%.
- The gross profit margin for RAMBUS INC is currently very high, coming in at 97.91%. Regardless of RMBS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.58% trails the industry average.
- RMBS, with its decline in revenue, slightly underperformed the industry average of 5.9%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full Rambus Ratings Report.
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