Trade-Ideas LLC identified

Rubicon Project

(

RUBI

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

  • RUBI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.0 million.
  • RUBI has traded 401,436 shares today.
  • RUBI is trading at 39.12 times the normal volume for the stock at this time of day.
  • RUBI is trading at a new high 12.14% 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 RUBI:

The Rubicon Project, Inc., a technology company, engages in automating the buying and selling of advertising. The company offers Advertising Automation Cloud, a technology platform that creates and powers a marketplace for the real time trading of digital advertising between buyers and sellers. Currently there are 9 analysts that rate Rubicon Project a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Rubicon Project has been 398,600 shares per day over the past 30 days. Rubicon Project has a market cap of $616.0 million and is part of the technology sector and computer software & services industry. Shares are down 16.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rubicon Project as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • RUBI's very impressive revenue growth greatly exceeded the industry average of 6.3%. Since the same quarter one year prior, revenues leaped by 99.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RUBI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, RUBI has a quick ratio of 1.55, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to other companies in the Software industry and the overall market, RUBICON PROJECT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RUBI has underperformed the S&P 500 Index, declining 21.81% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has significantly decreased to -$7.44 million or 258.18% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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