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Trade-Ideas LLC identified

FleetMatics Group

(

FLTX

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

  • FLTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.0 million.
  • FLTX has traded 143,280 shares today.
  • FLTX is trading at 2.58 times the normal volume for the stock at this time of day.
  • FLTX 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 FLTX:

TheStreet Recommends

Fleetmatics Group PLC provides software-as-a-service mobile workforce solutions for small and medium-sized businesses (SMBs) worldwide. FLTX has a PE ratio of 39. Currently there are 7 analysts that rate FleetMatics Group a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for FleetMatics Group has been 578,700 shares per day over the past 30 days. FleetMatics Group has a market cap of $1.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.83 and a short float of 12.9% with 9.40 days to cover. Shares are down 23% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FleetMatics Group as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, reasonable valuation levels and expanding profit margins. 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 4.5%. Since the same quarter one year prior, revenues rose by 20.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • FLTX's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.63, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 3.3% when compared to the same quarter one year prior, going from $12.42 million to $12.83 million.
  • FLEETMATICS GROUP PLC reported flat earnings per share in the most recent quarter. 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, FLEETMATICS GROUP PLC increased its bottom line by earning $0.98 versus $0.70 in the prior year. This year, the market expects an improvement in earnings ($1.77 versus $0.98).

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