Changyou.com (CYOU) Is Strong On High Volume Today

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

  • CYOU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • CYOU has traded 50,037 shares today.
  • CYOU is trading at 3.94 times the normal volume for the stock at this time of day.
  • CYOU is trading at a new high 13.15% 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 CYOU:

Changyou.com Limited develops and operates online games in the People's Republic of China. Currently there are no analysts that rate Changyou.com a buy, 3 analysts rate it a sell, and 1 rates it a hold.

The average volume for Changyou.com has been 188,000 shares per day over the past 30 days. Changyou.com has a market cap of $948.7 million and is part of the technology sector and computer software & services industry. Shares are down 34.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Changyou.com as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 18.9%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that CYOU's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.30 is high and demonstrates strong liquidity.
  • The gross profit margin for CHANGYOU.COM LTD is currently very high, coming in at 70.48%. Regardless of CYOU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CYOU's net profit margin of 22.21% compares favorably to the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Software industry and the overall market, CHANGYOU.COM LTD's return on equity is below that of both the industry average and the S&P 500.

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