Strong On High Volume: Tivo (TIVO) - TheStreet

Trade-Ideas LLC identified

Tivo

(

TIVO

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

  • TIVO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.9 million.
  • TIVO has traded 420,406 shares today.
  • TIVO is trading at 20.61 times the normal volume for the stock at this time of day.
  • TIVO is trading at a new high 3.01% 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 TIVO:

TiVo Inc. provides television software services and cloud-based software-as-a-service solutions that enable to view video content through various screens. TIVO has a PE ratio of 31. Currently there are 7 analysts that rate Tivo a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Tivo has been 1.0 million shares per day over the past 30 days. Tivo has a market cap of $902.1 million and is part of the services sector and media industry. The stock has a beta of 1.20 and a short float of 7.1% with 6.60 days to cover. Shares are down 21.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tivo as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 15.7%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TIVO INC has improved earnings per share by 12.5% 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, TIVO INC reported lower earnings of $0.28 versus $1.98 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus $0.28).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Software industry average. The net income has decreased by 10.4% when compared to the same quarter one year ago, dropping from $9.31 million to $8.34 million.
  • The debt-to-equity ratio of 1.11 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, TIVO has managed to keep a strong quick ratio of 1.84, which demonstrates the ability to cover short-term cash needs.

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