Trade-Ideas: Cypress Semiconductor Corporation (CY) Is Today's Pre-Market Mover With Heavy Volume Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Cypress Semiconductor Corporation ( CY) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cypress Semiconductor Corporation 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 $23.5 million.
  • CY traded 786,943 shares today in the pre-market hours as of 8:58 AM, representing 36.8% of its average daily volume.

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More details on CY:

Cypress Semiconductor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets mixed-signal, programmable solutions, specialized semiconductor memories, and integrated semiconductor solutions. The stock currently has a dividend yield of 3.8%. Currently there are 4 analysts that rate Cypress Semiconductor Corporation a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Cypress Semiconductor Corporation has been 2.7 million shares per day over the past 30 days. Cypress Semiconductor has a market cap of $1.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.06 and a short float of 7.8% with 4.17 days to cover. Shares are up 6.5% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cypress Semiconductor Corporation as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.9%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for CYPRESS SEMICONDUCTOR CORP is rather high; currently it is at 53.29%. Regardless of CY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CY's net profit margin of 1.94% is significantly lower than the industry average.
  • CYPRESS SEMICONDUCTOR CORP's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CYPRESS SEMICONDUCTOR CORP swung to a loss, reporting -$0.16 versus $0.89 in the prior year. This year, the market expects an improvement in earnings ($0.53 versus -$0.16).
  • The debt-to-equity ratio of 1.49 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, CY has a quick ratio of 0.60, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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