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 $11.1 million.
  • SNCR has traded 869,134 shares today.
  • SNCR is trading at 61.52 times the normal volume for the stock at this time of day.
  • SNCR is trading at a new low 12.09% 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 28. Currently there are 6 analysts that rate Synchronoss Technologies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Synchronoss Technologies has been 364,300 shares per day over the past 30 days. Synchronoss has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.49 and a short float of 18.8% with 14.64 days to cover. Shares are down 15% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

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, largely solid financial position with reasonable debt levels by most measures, increase in net income, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 20.5%. 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.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 5.21, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 3.4% when compared to the same quarter one year prior, going from $9.33 million to $9.65 million.
  • SYNCHRONOSS TECHNOLOGIES' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, 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 ($2.19 versus $0.91).

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