Trade-Ideas LLC identified

Benefitfocus

(

BNFT

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

  • BNFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.0 million.
  • BNFT has traded 107,958 shares today.
  • BNFT is trading at 16.81 times the normal volume for the stock at this time of day.
  • BNFT is trading at a new high 14.19% 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 BNFT:

Benefitfocus, Inc. provides cloud-based benefits software solutions for consumers, employers, insurance carriers, and brokers under a software-as-a-service model in the United States. Currently there are 7 analysts that rate Benefitfocus a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Benefitfocus has been 203,900 shares per day over the past 30 days. Benefitfocus has a market cap of $754.1 million and is part of the technology sector and computer software & services industry. Shares are down 29.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Benefitfocus as a

sell

. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to -$9.05 million or 65.84% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • BENEFITFOCUS INC has improved earnings per share by 21.6% 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, BENEFITFOCUS INC reported poor results of -$2.51 versus -$0.62 in the prior year. This year, the market expects an improvement in earnings (-$1.93 versus -$2.51).
  • 48.66% is the gross profit margin for BENEFITFOCUS INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -36.68% is in-line with the industry average.
  • The stock has risen over the past year at a faster pace than the S&P 500, reflecting the earnings growth of the company. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Internet Software & Services industry average. The net income increased by 11.8% when compared to the same quarter one year prior, going from -$18.89 million to -$16.66 million.

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