Trade-Ideas LLC identified

Inphi

(

IPHI

) as a strong on high relative volume 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 $17.7 million.
  • IPHI has traded 225,143 shares today.
  • IPHI is trading at 8.53 times the normal volume for the stock at this time of day.
  • IPHI is trading at a new high 10.02% 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 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 26. 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 583,700 shares per day over the past 30 days. Inphi has a market cap of $1.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.21 and a short float of 7.2% with 5.70 days to cover. Shares are up 30.2% year-to-date as of the close of trading on Friday.

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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 solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. 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:

  • Powered by its strong earnings growth of 103.84% and other important driving factors, this stock has surged by 66.66% 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.
  • INPHI CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, INPHI CORP continued to lose money by earning -$0.36 versus -$0.64 in the prior year. This year, the market expects an improvement in earnings ($1.28 versus -$0.36).
  • 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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