Imperva (IMPV) Is Today's Strong On High Volume Stock - TheStreet

Trade-Ideas LLC identified

Imperva

(

IMPV

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

  • IMPV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.7 million.
  • IMPV has traded 378,161 shares today.
  • IMPV is trading at 22.61 times the normal volume for the stock at this time of day.
  • IMPV is trading at a new high 16.03% 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 IMPV:

Imperva, Inc. develops, markets, sells, services, and supports cyber security solutions that protect business critical data and applications in the cloud or on premises worldwide. It operates in two segments, Imperva and Incapsula. Currently there are 12 analysts that rate Imperva a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Imperva has been 569,100 shares per day over the past 30 days. Imperva has a market cap of $1.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.68 and a short float of 10.4% with 3.07 days to cover. Shares are up 23% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Imperva as a

sell

. The area that we feel has been the company's primary weakness has been its deteriorating net income.

Highlights from the ratings report include:

  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income has decreased by 12.2% when compared to the same quarter one year ago, dropping from -$15.44 million to -$17.32 million.
  • 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 Software industry and the overall market, IMPERVA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • IMPERVA INC has improved earnings per share by 5.0% in the most recent quarter compared to 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, IMPERVA INC reported poor results of -$2.29 versus -$1.02 in the prior year. This year, the market expects an improvement in earnings (-$0.44 versus -$2.29).
  • The gross profit margin for IMPERVA INC is currently very high, coming in at 80.48%. 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 -32.39% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 68.32% to -$2.16 million when compared to the same quarter last year. In addition, IMPERVA INC has also vastly surpassed the industry average cash flow growth rate of -12.64%.

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