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

  • SNCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
  • SNCR has traded 297,219 shares today.
  • SNCR is trading at 14.04 times the normal volume for the stock at this time of day.
  • SNCR is trading at a new low 10.08% 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 SNCR:

Synchronoss Technologies, Inc. provides cloud solutions and software-based activation for connected devices worldwide. SNCR has a PE ratio of 36. Currently there are 6 analysts that rate Synchronoss Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Synchronoss Technologies has been 401,700 shares per day over the past 30 days. Synchronoss has a market cap of $1.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.42 and a short float of 16.1% with 11.80 days to cover. Shares are down 10.7% year-to-date as of the close of trading on Tuesday.

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TheStreet Quant Ratings rates Synchronoss Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 10.7%. Since the same quarter one year prior, revenues rose by 33.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SYNCHRONOSS TECHNOLOGIES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SYNCHRONOSS TECHNOLOGIES increased its bottom line by earning $0.91 versus $0.58 in the prior year. This year, the market expects an improvement in earnings ($2.24 versus $0.91).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 81.2% when compared to the same quarter one year prior, rising from $8.37 million to $15.15 million.
  • The gross profit margin for SYNCHRONOSS TECHNOLOGIES is rather high; currently it is at 60.80%. It has increased from the same quarter the previous year.

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