Trade-Ideas LLC identified

MACOM Technology Solutions Holdings

(

MTSI

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

  • MTSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.9 million.
  • MTSI has traded 311,393 shares today.
  • MTSI is trading at 23.88 times the normal volume for the stock at this time of day.
  • MTSI is trading at a new low 8.01% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MTSI with the Ticky from Trade-Ideas. See the FREE profile for MTSI NOW at Trade-Ideas

More details on MTSI:

M/A-COM Technology Solutions Holdings, Inc., together with its subsidiaries, designs, develops, manufactures, and markets analog RF, microwave, millimeter wave, and photonic semiconductor products in the United States, China, Taiwan, Japan, and internationally. Currently there are 8 analysts that rate MACOM Technology Solutions Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for MACOM Technology Solutions Holdings has been 612,600 shares per day over the past 30 days. MACOM Technology has a market cap of $1.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.15 and a short float of 33.3% with 13.46 days to cover. Shares are down 19.3% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MACOM Technology Solutions Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and unimpressive growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 35.3%. 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.
  • Net operating cash flow has increased to $19.58 million or 40.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.88%.
  • MTSI's debt-to-equity ratio of 0.84 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. Despite the fact that MTSI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.29 is high and demonstrates strong liquidity.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, MTSI has underperformed the S&P 500 Index, declining 18.09% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, M/ACOM TECHNOLOGY SOLUTIONS's return on equity significantly trails that of both the industry average and the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.