Tivo (TIVO): Today's Weak On High Volume Stock - TheStreet

Trade-Ideas LLC identified

Tivo

(

TIVO

) as a weak 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 $11.8 million.
  • TIVO has traded 109,705 shares today.
  • TIVO is trading at 4.16 times the normal volume for the stock at this time of day.
  • TIVO is trading at a new low 4.09% 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 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 34. Currently there are 7 analysts that rate Tivo a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Tivo has been 1.1 million shares per day over the past 30 days. Tivo has a market cap of $958.0 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 4.61 days to cover. Shares are down 17.5% year-to-date as of the close of trading on Wednesday.

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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 and unimpressive growth in net income.

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 rose by 11.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • TIVO's debt-to-equity ratio of 0.96 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that TIVO's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.89 is high and demonstrates strong liquidity.
  • 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 16.8% when compared to the same quarter one year ago, dropping from $6.35 million to $5.28 million.
  • TIVO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.06%, which is also worse than the performance of the S&P 500 Index. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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