Trade-Ideas LLC identified

Maxim Integrated Products

(

MXIM

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

  • MXIM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $227.8 million.
  • MXIM has traded 201,353 shares today.
  • MXIM is down 3.1% today.
  • MXIM was up 9.3% yesterday.

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More details on MXIM:

Maxim Integrated Products, Inc. designs, develops, manufactures, and markets various linear and mixed-signal integrated circuits worldwide. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. The stock currently has a dividend yield of 3.1%. MXIM has a PE ratio of 35. Currently there are 9 analysts that rate Maxim Integrated Products a buy, 1 analyst rates it a sell, and 7 rate it a hold.

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The average volume for Maxim Integrated Products has been 2.9 million shares per day over the past 30 days. Maxim Integrated has a market cap of $10.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.41 and a short float of 1.8% with 0.95 days to cover. Shares are up 31.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Maxim Integrated Products as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 5.47, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has remained constant at $117.34 million with no significant change when compared to the same quarter last year. Even though MAXIM INTEGRATED PRODUCTS's cash flow growth was minimal, the firm managed to surpass its industry's average growth rate of -84.30%.
  • Despite the weak revenue results, MXIM has outperformed against the industry average of 13.4%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 172.2% when compared to the same quarter one year ago, falling from $99.98 million to -$72.14 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MAXIM INTEGRATED PRODUCTS's return on equity significantly trails that of both the industry average and the S&P 500.

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