Trade-Ideas LLC identified

Rentrak

(

RENT

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

  • RENT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.5 million.
  • RENT has traded 95,704 shares today.
  • RENT is trading at 5.09 times the normal volume for the stock at this time of day.
  • RENT is trading at a new high 4.25% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 RENT:

Rentrak Corporation operates as a media measurement and advanced consumer targeting company serving the entertainment, television, video, and advertising industries worldwide. Currently there are 5 analysts that rate Rentrak a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Rentrak has been 231,100 shares per day over the past 30 days. Rentrak has a market cap of $751.2 million and is part of the services sector and diversified services industry. The stock has a beta of -1.06 and a short float of 18% with 5.80 days to cover. Shares are down 34.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rentrak as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 23.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RENT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.20, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for RENTRAK CORP is rather high; currently it is at 64.06%. Regardless of RENT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.69% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, RENTRAK CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$3.05 million or 402.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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