Rofin-Sinar Technologies (RSTI) Strong On High Relative Volume 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 Rofin-Sinar Technologies ( RSTI) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rofin-Sinar Technologies as such a stock due to the following factors:

  • RSTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • RSTI has traded 88,582 shares today.
  • RSTI is trading at 14.08 times the normal volume for the stock at this time of day.
  • RSTI is trading at a new high 4.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 RSTI:

ROFIN-SINAR Technologies Inc., together with its subsidiaries, is engaged in the design, development, engineering, manufacture, and marketing of laser sources and laser-based products and solutions for industrial material processing applications worldwide. RSTI has a PE ratio of 25.9. Currently there are no analysts that rate Rofin-Sinar Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Rofin-Sinar Technologies has been 155,400 shares per day over the past 30 days. Rofin-Sinar has a market cap of $644.5 million and is part of the technology sector and electronics industry. The stock has a beta of 2.05 and a short float of 3.5% with 5.76 days to cover. Shares are down 7.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Rofin-Sinar Technologies as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • RSTI's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, RSTI has a quick ratio of 2.32, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 37.50% is the gross profit margin for ROFIN SINAR TECHNOLOGIES INC which we consider to be strong. Regardless of RSTI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.83% trails the industry average.
  • RSTI, with its decline in revenue, slightly underperformed the industry average of 3.7%. Since the same quarter one year prior, revenues slightly dropped by 3.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly decreased to $2.43 million or 65.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market on the basis of return on equity, ROFIN SINAR TECHNOLOGIES INC underperformed against that of the industry average and is significantly less than that of 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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