Jiayuan.com International (DATE) Flagged As Strong On High Volume

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

  • DATE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • DATE has traded 82,672 shares today.
  • DATE is trading at 13.77 times the normal volume for the stock at this time of day.
  • DATE is trading at a new high 7.10% 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 DATE:

Jiayuan.com International Ltd. operates an online dating platform in the People's Republic of China. It operates through three segments: Online Services, Personalized Matchmaking Services, and Events and Other Services. The stock currently has a dividend yield of 3.2%. DATE has a PE ratio of 7. Currently there is 1 analyst that rates Jiayuan.com International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Jiayuan.com International has been 127,800 shares per day over the past 30 days. Jiayuan.com International has a market cap of $228.0 million and is part of the technology sector and internet industry. Shares are up 44.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Jiayuan.com International as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 38.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • DATE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, DATE has a quick ratio of 1.79, which demonstrates the ability of the company to cover short-term liquidity needs.
  • JIAYUAN.COM INTL LTD's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, JIAYUAN.COM INTL LTD reported lower earnings of $0.11 versus $0.34 in the prior year. This year, the market expects an improvement in earnings ($0.20 versus $0.11).
  • 46.80% is the gross profit margin for JIAYUAN.COM INTL LTD which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, DATE's net profit margin of 9.12% is significantly lower than the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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Trade-Ideas: Jiayuan.com International (DATE) Is Today's Weak On High Relative Volume Stock

Trade-Ideas: Jiayuan.com International (DATE) Is Today's Weak On High Relative Volume Stock