Trade-Ideas LLC identified

Cypress Semiconductor

(

CY

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

  • CY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $80.8 million.
  • CY has traded 2.4 million shares today.
  • CY is trading at 2.56 times the normal volume for the stock at this time of day.
  • CY is trading at a new low 8.07% 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 CY:

TST Recommends

Cypress Semiconductor Corporation provides mixed-signal programmable solutions, semiconductor memories, and integrated semiconductor solutions worldwide. The stock currently has a dividend yield of 5.5%. Currently there are 9 analysts that rate Cypress Semiconductor a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Cypress Semiconductor has been 6.4 million shares per day over the past 30 days. Cypress Semiconductor has a market cap of $2.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.67 and a short float of 12.2% with 3.94 days to cover. Shares are down 16.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cypress Semiconductor as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • CY's very impressive revenue growth greatly exceeded the industry average of 3.5%. Since the same quarter one year prior, revenues leaped by 147.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • 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 136.1% when compared to the same quarter one year prior, rising from $12.84 million to $30.31 million.
  • CY'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 41.95%, which is also worse than the performance of the S&P 500 Index.
  • 42.95% is the gross profit margin for CYPRESS SEMICONDUCTOR CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CY's net profit margin of 6.53% 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, CYPRESS SEMICONDUCTOR CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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