Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Maxwell Technologies as such a stock due to the following factors:
- MXWL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.2 million.
- MXWL has traded 94,688 shares today.
- MXWL is trading at 3.68 times the normal volume for the stock at this time of day.
- MXWL is trading at a new low 7.10% 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 MXWL:
Maxwell Technologies, Inc., together with its subsidiaries, develops, manufactures, and markets energy storage and power delivery products worldwide. Currently there are 4 analysts that rate Maxwell Technologies a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Maxwell Technologies has been 345,400 shares per day over the past 30 days. Maxwell has a market cap of $246.3 million and is part of the technology sector and electronics industry. The stock has a beta of 1.99 and a short float of 18.7% with 6.83 days to cover. Shares are down 22.8% year-to-date as of the close of trading on Friday.
rates Maxwell Technologies as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- MAXWELL TECHNOLOGIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, MAXWELL TECHNOLOGIES INC reported lower earnings of $0.22 versus $0.25 in the prior year. For the next year, the market is expecting a contraction of 18.2% in earnings ($0.18 versus $0.22).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 154.6% when compared to the same quarter one year ago, falling from $6.03 million to -$3.29 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, MAXWELL TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, MXWL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- 44.11% is the gross profit margin for MAXWELL TECHNOLOGIES INC which we consider to be strong. Regardless of MXWL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MXWL's net profit margin of -7.91% significantly underperformed when compared to the industry average.
- You can view the full Maxwell Technologies Ratings Report.