Pixelworks (PXLW) Showing Signs Of A Dead Cat Bounce Today

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 Pixelworks ( PXLW) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Pixelworks as such a stock due to the following factors:

  • PXLW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
  • PXLW has traded 230,409 shares today.
  • PXLW is up 3.4% today.
  • PXLW was down 6.2% yesterday.

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More details on PXLW:

Pixelworks, Inc. designs, develops, and markets video and pixel processing semiconductors, software, and custom ASIC solutions for digital video applications. Currently there is 1 analyst that rates Pixelworks a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Pixelworks has been 941,400 shares per day over the past 30 days. Pixelworks has a market cap of $196.5 million and is part of the technology sector and electronics industry. The stock has a beta of 0.57 and a short float of 13.1% with 1.33 days to cover. Shares are up 69.9% year-to-date as of the close of trading on Thursday.

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 Pixelworks as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from the ratings report include:
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, PIXELWORKS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • PIXELWORKS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PIXELWORKS INC reported poor results of -$0.48 versus -$0.31 in the prior year. This year, the market expects an improvement in earnings ($0.14 versus -$0.48).
  • The gross profit margin for PIXELWORKS INC is rather high; currently it is at 67.49%. 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 -18.51% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 146.15% to $1.17 million when compared to the same quarter last year. In addition, PIXELWORKS INC has also vastly surpassed the industry average cash flow growth rate of 2.94%.
  • 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 53.6% when compared to the same quarter one year prior, rising from -$5.41 million to -$2.51 million.

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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