Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SunEdison as such a stock due to the following factors:
- SUNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $351.6 million.
- SUNE has traded 12.6 million shares today.
- SUNE is trading at 2.03 times the normal volume for the stock at this time of day.
- SUNE is trading at a new low 14.03% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 SUNE:
SunEdison, Inc. develops, manufactures, and sells silicon wafers to the semiconductor industry. The company operates through three segments: Solar Energy, TerraForm Power, and Semiconductor Materials. Currently there are 10 analysts that rate SunEdison a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for SunEdison has been 49.5 million shares per day over the past 30 days. SunEdison has a market cap of $2.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 4.20 and a short float of 44.8% with 1.97 days to cover. Shares are down 65.5% year-to-date as of the close of trading on Monday.
rates SunEdison as a
. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The debt-to-equity ratio is very high at 8.33 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, SUNE maintains a poor quick ratio of 0.76, which illustrates the inability to avoid short-term cash problems.
- Looking at the price performance of SUNE's shares over the past 12 months, there is not much good news to report: the stock is down 67.45%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- SUNEDISON INC's earnings per share declined by 19.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SUNEDISON INC reported poor results of -$4.12 versus -$2.39 in the prior year. This year, the market expects an improvement in earnings (-$3.59 versus -$4.12).
- 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, SUNEDISON INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry average. The net income has remained constant at -$284.00 million when compared to the same quarter one year ago.
- You can view the full SunEdison Ratings Report.