Coupons.com Incorporated (COUP) Is Weak 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 Coupons.com Incorporated ( COUP) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Coupons.com Incorporated as such a stock due to the following factors:

  • COUP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • COUP has traded 54,701 shares today.
  • COUP is trading at 2.01 times the normal volume for the stock at this time of day.
  • COUP 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 COUP:

Coupons.com Incorporated provides digital promotions and media platform that connect brands and retailers with consumers. COUP has a PE ratio of 1294. Currently there is 1 analyst that rates Coupons.com Incorporated a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Coupons.com Incorporated has been 491,400 shares per day over the past 30 days. Coupons.com has a market cap of $1.1 billion and is part of the technology sector and internet industry. Shares are down 28.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Coupons.com Incorporated as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$0.85 million or 199.88% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Compared to other companies in the Internet Software & Services industry and the overall market, COUPONS.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • COUP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 52.04%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter.
  • The gross profit margin for COUPONS.COM INC is rather high; currently it is at 67.68%. 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 -7.20% is in-line with the industry average.
  • COUP's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.71, which clearly demonstrates the ability to cover short-term cash needs.

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