Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Synacor as such a stock due to the following factors:
- SYNC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.5 million.
- SYNC has traded 290,126 shares today.
- SYNC is trading at 2.11 times the normal volume for the stock at this time of day.
- SYNC is trading at a new low 6.17% 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 SYNC:
Synacor, Inc. operates as a technology development, multiplatform services, and revenue partner for video, Internet, and communications providers; and device manufacturers and enterprises.
The average volume for Synacor has been 899,800 shares per day over the past 30 days. Synacor has a market cap of $84.7 million and is part of the technology sector and internet industry. The stock has a beta of 0.47 and a short float of 0.5% with 0.31 days to cover. Shares are up 76.6% year-to-date as of the close of trading on Tuesday.
rates Synacor as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, SYNC's share price has jumped by 54.87%, exceeding the performance of the broader market during that same time frame. 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.
- Despite its growing revenue, the company underperformed as compared with the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 13.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for SYNACOR INC is rather high; currently it is at 57.13%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -5.17% is in-line with the industry average.
- SYNACOR INC's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SYNACOR INC continued to lose money by earning -$0.12 versus -$0.46 in the prior year. For the next year, the market is expecting a contraction of 183.3% in earnings (-$0.34 versus -$0.12).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 45.9% when compared to the same quarter one year ago, falling from -$1.07 million to -$1.57 million.
- You can view the full Synacor Ratings Report.