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Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cirrus Logic as such a stock due to the following factors:
- CRUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.2 million.
- CRUS has traded 794,248 shares today.
- CRUS is trading at 19.01 times the normal volume for the stock at this time of day.
- CRUS is trading at a new low 8.04% 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 CRUS:
Cirrus Logic, Inc., a fabless semiconductor company, develops analog and mixed-signal integrated circuits (ICs) for a range of consumer and industrial markets. CRUS has a PE ratio of 14.7. Currently there is 1 analyst that rates Cirrus Logic a buy, 3 analysts rate it a sell, and 2 rate it a hold.
The average volume for Cirrus Logic has been 798,500 shares per day over the past 30 days. Cirrus Logic has a market cap of $1.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.85 and a short float of 13.8% with 7.24 days to cover. Shares are up 7.2% year-to-date as of the close of trading on Wednesday.
rates Cirrus Logic as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- CRUS 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 3.87, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for CIRRUS LOGIC INC is rather high; currently it is at 52.09%. Regardless of CRUS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CRUS's net profit margin of 6.71% is significantly lower than the industry average.
- 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 Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, CIRRUS LOGIC INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 50.4% when compared to the same quarter one year ago, falling from $20.64 million to $10.25 million.
- You can view the full Cirrus Logic Ratings Report.