Strong On High Volume: Cirrus Logic (CRUS)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cirrus Logic as such a stock due to the following factors:
- CRUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.3 million.
- CRUS has traded 241,759 shares today.
- CRUS is trading at 4.07 times the normal volume for the stock at this time of day.
- CRUS is trading at a new high 4.05% 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 CRUS:
Cirrus Logic, Inc., a fabless semiconductor company, develops analog and mixed-signal integrated circuits for a range of consumer and industrial markets. CRUS has a PE ratio of 14. Currently there are 7 analysts that rate Cirrus Logic a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Cirrus Logic has been 1.1 million shares per day over the past 30 days. Cirrus Logic has a market cap of $2.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.13 and a short float of 9.2% with 4.81 days to cover. Shares are up 12.8% year-to-date as of the close of trading on Friday.
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Analysis:
rates Cirrus Logic as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- CRUS's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CRUS has a quick ratio of 2.48, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, CIRRUS LOGIC INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- CIRRUS LOGIC INC's earnings per share declined by 34.4% 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, CIRRUS LOGIC INC increased its bottom line by earning $1.87 versus $0.84 in the prior year. This year, the market expects an improvement in earnings ($2.87 versus $1.87).
- CRUS, with its decline in revenue, slightly underperformed the industry average of 3.3%. Since the same quarter one year prior, revenues slightly dropped by 9.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Cirrus Logic Ratings Report.
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