Today's Weak On High Volume Stock: Symantec (SYMC)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Symantec as such a stock due to the following factors:
- SYMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $94.9 million.
- SYMC has traded 571,844 shares today.
- SYMC is trading at 3.47 times the normal volume for the stock at this time of day.
- SYMC is trading at a new low 3.02% 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 SYMC:
Symantec Corporation, together with its subsidiaries, provides security, backup, and availability solutions worldwide. Its products and services protect people and information in various environments from the mobile device and enterprise data center and to cloud-based systems. The stock currently has a dividend yield of 2.9%. SYMC has a PE ratio of 12. Currently there is 1 analyst that rates Symantec a buy, 3 analysts rate it a sell, and 14 rate it a hold.
The average volume for Symantec has been 5.5 million shares per day over the past 30 days. Symantec has a market cap of $14.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.22 and a short float of 1.1% with 1.45 days to cover. Shares are down 18.6% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Symantec as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has slightly increased to $300.00 million or 2.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.94%.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.8%. Since the same quarter one year prior, revenues fell by 13.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of SYMANTEC CORP has not done very well: it is down 16.58% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- 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 Software industry. The net income has significantly decreased by 50.4% when compared to the same quarter one year ago, falling from $236.00 million to $117.00 million.
- You can view the full Symantec Ratings Report.
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