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Trade-Ideas LLC identified

Mellanox Technologies

(

MLNX

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Mellanox Technologies as such a stock due to the following factors:

  • MLNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.8 million.
  • MLNX traded 67,126 shares today in the pre-market hours as of 9:00 AM, representing 11.2% of its average daily volume.

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More details on MLNX:

Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, and sells interconnect products and solutions. Currently there are 8 analysts that rate Mellanox Technologies a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Mellanox Technologies has been 719,900 shares per day over the past 30 days. Mellanox has a market cap of $2.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.17 and a short float of 9.7% with 6.01 days to cover. Shares are up 11.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mellanox Technologies as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 107.3% when compared to the same quarter one year prior, rising from -$5.89 million to $0.43 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 18.4%. Since the same quarter one year prior, revenues rose by 16.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has slightly increased to $17.20 million or 4.73% when compared to the same quarter last year. Despite an increase in cash flow, MELLANOX TECHNOLOGIES LTD's average is still marginally south of the industry average growth rate of 10.84%.
  • MELLANOX TECHNOLOGIES LTD 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, MELLANOX TECHNOLOGIES LTD swung to a loss, reporting -$0.54 versus $2.53 in the prior year. This year, the market expects an improvement in earnings ($1.07 versus -$0.54).
  • 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, MELLANOX TECHNOLOGIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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