Triquint Semiconductor (TQNT): Today's Weak On High 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 Triquint Semiconductor ( TQNT) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Triquint Semiconductor as such a stock due to the following factors:

  • TQNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.3 million.
  • TQNT has traded 495,426 shares today.
  • TQNT is trading at 2.52 times the normal volume for the stock at this time of day.
  • TQNT is trading at a new low 3.01% 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 TQNT:

TriQuint Semiconductor, Inc. provides a portfolio of radio frequency (RF) solutions for mobile device, networks infrastructure, and defense and aerospace markets worldwide. TQNT has a PE ratio of 2772.0. Currently there are 5 analysts that rate Triquint Semiconductor a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Triquint Semiconductor has been 3.5 million shares per day over the past 30 days. Triquint Semiconductor has a market cap of $4.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.93 and a short float of 3.2% with 1.58 days to cover. Shares are up 232.4% year-to-date as of the close of trading on Wednesday.

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 Triquint Semiconductor as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and compelling growth in net income. 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:
  • Compared to its price level of one year ago, TQNT is up 238.87% to its most recent closing price of 27.72. Looking ahead, our view is that this company's fundamentals should not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Net operating cash flow has significantly increased by 270.03% to $46.94 million when compared to the same quarter last year. In addition, TRIQUINT SEMICONDUCTOR INC has also vastly surpassed the industry average cash flow growth rate of 11.95%.
  • The gross profit margin for TRIQUINT SEMICONDUCTOR INC is rather high; currently it is at 55.32%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TQNT's net profit margin of 9.62% significantly trails the industry average.
  • TRIQUINT SEMICONDUCTOR 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, TRIQUINT SEMICONDUCTOR INC reported poor results of -$0.23 versus -$0.16 in the prior year. This year, the market expects an improvement in earnings ($0.78 versus -$0.23).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TRIQUINT SEMICONDUCTOR INC'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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