Trade-Ideas LLC identified

Ixia

(

XXIA

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

  • XXIA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.2 million.
  • XXIA has traded 90,726 shares today.
  • XXIA is trading at 5.23 times the normal volume for the stock at this time of day.
  • XXIA is trading at a new low 8.07% 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 XXIA:

TST Recommends

Ixia provides application performance and security resilience solutions to organizations in the United States and internationally. Currently there are 3 analysts that rate Ixia a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Ixia has been 543,700 shares per day over the past 30 days. Ixia has a market cap of $1.2 billion and is part of the technology sector and internet industry. The stock has a beta of -0.45 and a short float of 2.9% with 2.90 days to cover. Shares are up 33.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ixia as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 10.7%. Since the same quarter one year prior, revenues rose by 20.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 136.84% and other important driving factors, this stock has surged by 69.57% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • IXIA reported significant earnings per share improvement 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, IXIA swung to a loss, reporting -$0.53 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.60 versus -$0.53).
  • Despite currently having a low debt-to-equity ratio of 0.49, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.86 is weak.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market on the basis of return on equity, IXIA underperformed against that of the industry average and is significantly less than that of the S&P 500.

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