SunEdison (SUNE) Is Strong On High 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.

Trade-Ideas LLC identified SunEdison ( SUNE) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SunEdison as such a stock due to the following factors:

  • SUNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $375.9 million.
  • SUNE has traded 1.0 million shares today.
  • SUNE is trading at 2.35 times the normal volume for the stock at this time of day.
  • SUNE is trading at a new high 3.01% 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 SUNE:

SunEdison, Inc. develops, manufactures, and sells silicon wafers to the semiconductor industry. The company operates through three segments: Solar Energy, TerraForm Power, and Semiconductor Materials. Currently there are 9 analysts that rate SunEdison a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for SunEdison has been 9.3 million shares per day over the past 30 days. SunEdison has a market cap of $8.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 4.89 and a short float of 30.3% with 6.44 days to cover. Shares are up 51% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SunEdison as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 59.11% and other important driving factors, this stock has surged by 58.82% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • 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 39.4% when compared to the same quarter one year prior, rising from -$614.00 million to -$372.00 million.
  • Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SUNEDISON INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 77.64 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.37, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has decreased to -$308.00 million or 43.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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