Trade-Ideas LLC identified

Seagate Technology

(

STX

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Seagate Technology as such a stock due to the following factors:

  • STX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $132.0 million.
  • STX has traded 379,725 shares today.
  • STX is down 3% today.
  • STX was up 6.3% yesterday.

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

More details on STX:

Seagate Technology Public Limited Company designs, manufactures, and sells electronic data storage products in the Asia Pacific, the Americas, and EMEA countries. The stock currently has a dividend yield of 11.2%. STX has a PE ratio of 75. Currently there are 4 analysts that rate Seagate Technology a buy, 5 analysts rate it a sell, and 14 rate it a hold.

The average volume for Seagate Technology has been 7.9 million shares per day over the past 30 days. Seagate Technology has a market cap of $6.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.23 and a short float of 11.7% with 5.63 days to cover. Shares are down 34.7% year-to-date as of the close of trading on Wednesday.

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 Seagate Technology as a

hold

. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.

Highlights from the ratings report include:

  • STX, with its decline in revenue, slightly underperformed the industry average of 12.8%. Since the same quarter one year prior, revenues fell by 22.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • SEAGATE TECHNOLOGY PLC 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SEAGATE TECHNOLOGY PLC increased its bottom line by earning $5.22 versus $4.52 in the prior year. For the next year, the market is expecting a contraction of 67.4% in earnings ($1.70 versus $5.22).
  • The debt-to-equity ratio is very high at 2.45 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, STX's quick ratio is somewhat strong at 1.09, demonstrating the ability to handle short-term liquidity needs.
  • 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 Computers & Peripherals industry. The net income has significantly decreased by 106.9% when compared to the same quarter one year ago, falling from $291.00 million to -$20.00 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 53.19%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 107.95% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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.