Trade-Ideas: Castlight Health (CSLT) Is Today's Strong On High Relative Volume Stock
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Castlight Health as such a stock due to the following factors:
- CSLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
- CSLT has traded 67,442 shares today.
- CSLT is trading at 6.57 times the normal volume for the stock at this time of day.
- CSLT is trading at a new high 3.19% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CSLT with the Ticky from Trade-Ideas. See the FREE profile for CSLT NOW at Trade-Ideas
More details on CSLT:
Castlight Health, Inc. provides cloud-based software in the United States. Its software products enable employees to make health care decisions, and to communicate and measure their benefit programs. Currently there are 4 analysts that rate Castlight Health a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Castlight Health has been 269,900 shares per day over the past 30 days. Castlight Health has a market cap of $392.4 million and is part of the technology sector and computer software & services industry. Shares are up 2.8% year-to-date as of the close of trading on Thursday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Castlight Health as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Technology industry and the overall market, CASTLIGHT HEALTH INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to -$11.96 million or 3.57% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- CSLT'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 59.81%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
- The gross profit margin for CASTLIGHT HEALTH INC is rather high; currently it is at 57.73%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -89.41% is in-line with the industry average.
- CSLT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.90, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full Castlight Health Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
