Weak On High Volume: Control4 (CTRL)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Control4 as such a stock due to the following factors:
- CTRL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
- CTRL has traded 114,008 shares today.
- CTRL is trading at 9.04 times the normal volume for the stock at this time of day.
- CTRL is trading at a new low 4.15% 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 CTRL:
Control4 Corporation provides automation and control solutions for the connected home in the Untied States, Canada, and internationally. CTRL has a PE ratio of 19. Currently there is 1 analyst that rates Control4 a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Control4 has been 196,300 shares per day over the past 30 days. Control4 has a market cap of $217.0 million and is part of the technology sector and electronics industry. Shares are down 57.5% year-to-date as of the close of trading on Friday.
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Analysis:
rates Control4 as a
. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 34.65%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 54.54% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CTRL is still more expensive than most of the other companies in its industry.
- 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 56.9% when compared to the same quarter one year ago, falling from $2.76 million to $1.19 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market on the basis of return on equity, CONTROL4 CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for CONTROL4 CORP is rather high; currently it is at 52.85%. Regardless of CTRL'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 2.73% trails the industry average.
- CONTROL4 CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CONTROL4 CORP increased its bottom line by earning $0.32 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($0.43 versus $0.32).
- You can view the full Control4 Ratings Report.
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