Today's Pre-Market Trading Very Positive For Altera (ALTR)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Altera as such a stock due to the following factors:
- ALTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $168.2 million.
- ALTR traded 72,726 shares today in the pre-market hours as of 8:02 AM.
- ALTR is up 3% today from yesterday's close.
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More details on ALTR:
Altera Corporation, a semiconductor company, designs and sells programmable logic devices (PLDs), HardCopy application-specific integrated circuit (ASIC) devices, power system-on-chip devices (PowerSoCs), pre-defined design building blocks, and associated development tools. The stock currently has a dividend yield of 2.1%. ALTR has a PE ratio of 22.9. Currently there are 10 analysts that rate Altera a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Altera has been 2.9 million shares per day over the past 30 days. Altera has a market cap of $10.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.00 and a short float of 3.1% with 2.67 days to cover. Shares are down 6.4% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Altera as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- ALTERA CORP has improved earnings per share by 16.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ALTERA CORP increased its bottom line by earning $1.52 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $1.52).
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.6%. Since the same quarter one year prior, revenues slightly increased by 5.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.45, 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 5.14, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has increased to $150.78 million or 15.30% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -16.21%.
- The gross profit margin for ALTERA CORP is rather high; currently it is at 67.48%. Regardless of ALTR'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 23.15% trails the industry average.
- You can view the full Altera Ratings Report.
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