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

  • LPTH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.2 million.
  • LPTH has traded 228,894 shares today.
  • LPTH is trading at 8.18 times the normal volume for the stock at this time of day.
  • LPTH is trading at a new low 3.20% 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 LPTH:

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. It offers precision molded glass aspheric optics, infrared aspheric lenses, GRADIUM glass lenses, and other optical materials used to produce products that manipulate light. LPTH has a PE ratio of 63. Currently there is 1 analyst that rates LightPath Technologies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for LightPath Technologies has been 290,200 shares per day over the past 30 days. LightPath has a market cap of $47.8 million and is part of the industrial goods sector and industrial industry. The stock has a beta of -1.15 and a short float of 5.4% with 0.42 days to cover. Shares are up 21.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates LightPath Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and compelling growth in net income. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • LPTH's very impressive revenue growth greatly exceeded the industry average of 2.2%. Since the same quarter one year prior, revenues leaped by 61.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LPTH's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LPTH has a quick ratio of 2.03, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for LIGHTPATH TECHNOLOGIES INC is rather high; currently it is at 58.07%. It has increased significantly from the same period last year. Along with this, the net profit margin of 20.11% is above that of the industry average.
  • Net operating cash flow has significantly increased by 1065.00% to $0.97 million when compared to the same quarter last year. In addition, LIGHTPATH TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of -9.04%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 245.6% when compared to the same quarter one year prior, rising from -$0.58 million to $0.84 million.

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