Seagate Technology (STX): Today's Weak On High Volume Stock

Trade-Ideas LLC identified Seagate Technology (STX) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Seagate Technology

(

STX

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Seagate Technology as such a stock due to the following factors:

  • STX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $162.3 million.
  • STX has traded 635,415 shares today.
  • STX is trading at 2.14 times the normal volume for the stock at this time of day.
  • STX is trading at a new low 4.02% 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 STX:

Seagate Technology Public Limited Company designs, manufactures, and sells electronic data storage products in the Asia Pacific, the Americas, and EMEA countries. The stock currently has a dividend yield of 7%. STX has a PE ratio of 6. Currently there are 6 analysts that rate Seagate Technology a buy, 4 analysts rate it a sell, and 12 rate it a hold.

The average volume for Seagate Technology has been 5.3 million shares per day over the past 30 days. Seagate Technology has a market cap of $10.8 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.13 and a short float of 11.5% with 6.07 days to cover. Shares are down 48.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Seagate Technology as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:

  • 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 Computers & Peripherals industry and the overall market, SEAGATE TECHNOLOGY PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $824.00 million or 36.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.71%.
  • The revenue fell significantly faster than the industry average of 25.6%. Since the same quarter one year prior, revenues fell by 22.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for SEAGATE TECHNOLOGY PLC is currently lower than what is desirable, coming in at 29.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.16% significantly trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Computers & Peripherals industry. The net income has significantly decreased by 91.1% when compared to the same quarter one year ago, falling from $381.00 million to $34.00 million.

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