Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Synaptics as such a stock due to the following factors:
- SYNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.4 million.
- SYNA has traded 60,304 shares today.
- SYNA is trading at 2.22 times the normal volume for the stock at this time of day.
- SYNA is trading at a new low 3.00% 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 SYNA:
Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. SYNA has a PE ratio of 26. Currently there are 7 analysts that rate Synaptics a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Synaptics has been 687,100 shares per day over the past 30 days. Synaptics has a market cap of $2.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.29 and a short float of 12.6% with 7.22 days to cover. Shares are down 7.2% year-to-date as of the close of trading on Thursday.
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rates Synaptics as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 1.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SYNA has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
- SYNAPTICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SYNAPTICS INC increased its bottom line by earning $2.84 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($6.40 versus $2.84).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 66.8% when compared to the same quarter one year prior, rising from $20.98 million to $35.00 million.
- Net operating cash flow has significantly increased by 689.99% to $94.50 million when compared to the same quarter last year. In addition, SYNAPTICS INC has also vastly surpassed the industry average cash flow growth rate of -3.95%.
- You can view the full Synaptics Ratings Report.