Lattice Semiconductor (LSCC) 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.

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

  • LSCC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • LSCC has traded 623,891 shares today.
  • LSCC is trading at 2.77 times the normal volume for the stock at this time of day.
  • LSCC is trading at a new high 3.00% 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 LSCC:

Lattice Semiconductor Corporation designs, develops, and markets programmable logic products and related software in Asia, Europe, and the Americas. It offers products based on field programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs) architectures. Currently there are 4 analysts that rate Lattice Semiconductor a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Lattice Semiconductor has been 1.2 million shares per day over the past 30 days. Lattice Semiconductor has a market cap of $731.2 million and is part of the technology sector and electronics industry. The stock has a beta of 1.30 and a short float of 4.2% with 5.50 days to cover. Shares are down 9.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lattice Semiconductor 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 deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.87, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, LSCC has a quick ratio of 2.05, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for LATTICE SEMICONDUCTOR CORP is rather high; currently it is at 63.00%. 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 -60.21% is in-line with the industry average.
  • LSCC, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 8.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 545.1% when compared to the same quarter one year ago, falling from $11.98 million to -$53.35 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, LATTICE SEMICONDUCTOR CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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