Net 1 Ueps Technologies (UEPS) Weak On High Volume Today

Trade-Ideas LLC identified Net 1 Ueps Technologies ( UEPS) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Net 1 Ueps Technologies as such a stock due to the following factors:

  • UEPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.7 million.
  • UEPS has traded 70,645 shares today.
  • UEPS is trading at 5.52 times the normal volume for the stock at this time of day.
  • UEPS is trading at a new low 3.40% 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 UEPS:

Net 1 UEPS Technologies, Inc. provides payment solutions and transaction processing services for various industries in South Africa, South Korea, and internationally. UEPS has a PE ratio of 9. Currently there is 1 analyst that rates Net 1 Ueps Technologies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Net 1 Ueps Technologies has been 363,600 shares per day over the past 30 days. Net 1 Ueps has a market cap of $829.6 million and is part of the services sector and diversified services industry. The stock has a beta of 0.48 and a short float of 0.3% with 0.20 days to cover. Shares are up 53.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Net 1 Ueps Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. 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 26.8%. Since the same quarter one year prior, revenues slightly increased by 5.2%. 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.
  • Compared to its closing price of one year ago, UEPS's share price has jumped by 55.51%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, UEPS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has slightly increased to $31.83 million or 1.26% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.94%.
  • NET 1 UEPS TECHNOLOGIES INC's earnings per share declined by 13.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NET 1 UEPS TECHNOLOGIES INC increased its bottom line by earning $2.01 versus $1.48 in the prior year. This year, the market expects an improvement in earnings ($2.30 versus $2.01).

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