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Trade-Ideas LLC identified

RPX

(

RPXC

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

  • RPXC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • RPXC has traded 51,538 shares today.
  • RPXC is trading at 5.66 times the normal volume for the stock at this time of day.
  • RPXC is trading at a new low 5.03% 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 RPXC:

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TheStreet Recommends

RPX Corporation provides patent risk management solutions in the United States, Japan, and internationally. It offers a subscription-based patent risk management solution that facilitates exchanges of value between owners and users of patents. RPXC has a PE ratio of 18. Currently there are 2 analysts that rate RPX a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for RPX has been 266,400 shares per day over the past 30 days. RPX has a market cap of $836.9 million and is part of the services sector and diversified services industry. The stock has a beta of 1.60 and a short float of 5.2% with 11.91 days to cover. Shares are up 9.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates RPX as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • RPXC's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • RPXC 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 2.51, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for RPX CORP is currently very high, coming in at 97.95%. Regardless of RPXC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RPXC's net profit margin of 11.88% compares favorably to the industry average.
  • RPX CORP's earnings per share declined by 17.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, RPX CORP reported lower earnings of $0.72 versus $0.77 in the prior year. This year, the market expects an improvement in earnings ($0.94 versus $0.72).

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