Trade-Ideas LLC identified

Inteliquent

(

IQNT

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

  • IQNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • IQNT has traded 220,161 shares today.
  • IQNT is trading at 38.57 times the normal volume for the stock at this time of day.
  • IQNT is trading at a new high 16.14% 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 IQNT:

Inteliquent, Inc. provides voice telecommunications services on a wholesale basis in the United States and internationally. The company offers its services using an all-IP network, which enables to deliver global connectivity for various media, including voice. The stock currently has a dividend yield of 3.4%. IQNT has a PE ratio of 15. Currently there are 2 analysts that rate Inteliquent a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Inteliquent has been 210,300 shares per day over the past 30 days. Inteliquent has a market cap of $599.7 million and is part of the technology sector and telecommunications industry. The stock has a beta of 2.76 and a short float of 2.2% with 4.65 days to cover. Shares are down 9.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Inteliquent as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 67.94% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IQNT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Diversified Telecommunication Services industry average. The net income increased by 5.8% when compared to the same quarter one year prior, going from $9.45 million to $10.00 million.
  • IQNT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 9.27, which clearly demonstrates the ability to cover short-term cash needs.
  • 45.76% is the gross profit margin for INTELIQUENT INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.90% is above that of the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.3%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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