Trade-Ideas LLC identified

Inphi

(

IPHI

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

  • IPHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.8 million.
  • IPHI has traded 236,423 shares today.
  • IPHI is down 3% today.
  • IPHI was up 12.7% yesterday.

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More details on IPHI:

Inphi Corporation provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter, and computing markets worldwide. IPHI has a PE ratio of 21. Currently there are 12 analysts that rate Inphi a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Inphi has been 642,600 shares per day over the past 30 days. Inphi has a market cap of $1.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.11 and a short float of 7.2% with 2.63 days to cover. Shares are up 18.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Inphi as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. 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:

  • IPHI's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 12.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 103.84% and other important driving factors, this stock has surged by 25.37% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The gross profit margin for INPHI CORP is currently very high, coming in at 74.39%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.33% trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.58, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 10.89 is very high and demonstrates very strong liquidity.
  • 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 Semiconductors & Semiconductor Equipment industry and the overall market, INPHI CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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