Trade-Ideas LLC identified

Rubicon Project

(

RUBI

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

  • RUBI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • RUBI has traded 159,537 shares today.
  • RUBI is trading at 4.92 times the normal volume for the stock at this time of day.
  • RUBI is trading at a new low 8.03% 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 RUBI:

The Rubicon Project, Inc., a technology company, engages in automating the buying and selling of advertising. The company offers advertising automation platform that creates and powers a marketplace for buyers and sellers to readily buy and sell advertising at scale. RUBI has a PE ratio of 75. Currently there are 9 analysts that rate Rubicon Project a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Rubicon Project has been 690,900 shares per day over the past 30 days. Rubicon Project has a market cap of $727.9 million and is part of the technology sector and computer software & services industry. Shares are down 7.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rubicon Project 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 impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:

  • RUBI's very impressive revenue growth greatly exceeded the industry average of 9.5%. Since the same quarter one year prior, revenues leaped by 86.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RUBI 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. To add to this, RUBI has a quick ratio of 1.70, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for RUBICON PROJECT INC is currently very high, coming in at 84.35%. Regardless of RUBI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RUBI's net profit margin of 3.29% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to $10.67 million or 52.45% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • RUBI has underperformed the S&P 500 Index, declining 15.81% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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