Trade-Ideas LLC identified

BroadSoft

(

BSFT

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

  • BSFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.8 million.
  • BSFT has traded 347,718 shares today.
  • BSFT is trading at 54.48 times the normal volume for the stock at this time of day.
  • BSFT is trading at a new high 19.00% 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 BSFT:

BroadSoft, Inc. Currently there are 7 analysts that rate BroadSoft a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for BroadSoft has been 301,200 shares per day over the past 30 days. BroadSoft has a market cap of $903.2 million and is part of the technology sector and computer software & services industry. The stock has a beta of 0.95 and a short float of 13.6% with 12.13 days to cover. Shares are down 11% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BroadSoft as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 26.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • BSFT's debt-to-equity ratio of 0.75 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.09 is very high and demonstrates very strong liquidity.
  • 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 107.4% when compared to the same quarter one year ago, falling from -$2.29 million to -$4.75 million.
  • Net operating cash flow has significantly decreased to $4.55 million or 76.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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