Trade-Ideas LLC identified

Ceragon Networks

(

CRNT

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

  • CRNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • CRNT has traded 103,745 shares today.
  • CRNT is trading at 2.65 times the normal volume for the stock at this time of day.
  • CRNT is trading at a new low 3.37% 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 CRNT:

TST Recommends

Ceragon Networks Ltd. provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice, data, and multimedia services worldwide. CRNT has a PE ratio of 73. Currently there is 1 analyst that rates Ceragon Networks a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Ceragon Networks has been 457,600 shares per day over the past 30 days. Ceragon has a market cap of $170.0 million and is part of the technology sector and telecommunications industry. The stock has a beta of 0.86 and a short float of 0.5% with 0.23 days to cover. Shares are up 71.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ceragon Networks as a

sell

. The area that we feel has been the company's primary weakness has been its declining revenues.

Highlights from the ratings report include:

  • The revenue fell significantly faster than the industry average of 0.2%. Since the same quarter one year prior, revenues fell by 36.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 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 Communications Equipment industry and the overall market on the basis of return on equity, CERAGON NETWORKS LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • 39.11% is the gross profit margin for CERAGON NETWORKS LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.72% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 771.67% to $12.71 million when compared to the same quarter last year. In addition, CERAGON NETWORKS LTD has also vastly surpassed the industry average cash flow growth rate of -2.37%.

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