Trade-Ideas LLC identified Synaptics ( SYNA) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Synaptics as such a stock due to the following factors:

  • SYNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.1 million.
  • SYNA has traded 297,607 shares today.
  • SYNA traded in a range 202.9% of the normal price range with a price range of $5.31.
  • SYNA traded below its daily resistance level (quality: 35 days, meaning that the stock is crossing a resistance level set by the last 35 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on SYNA:

Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. SYNA has a PE ratio of 26. Currently there are 7 analysts that rate Synaptics a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Synaptics has been 681,400 shares per day over the past 30 days. Synaptics has a market cap of $3.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.29 and a short float of 12.6% with 9.00 days to cover. Shares are up 0.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Synaptics as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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 came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 1.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SYNA has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SYNAPTICS INC 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 year. We feel that this trend should continue. During the past fiscal year, SYNAPTICS INC increased its bottom line by earning $2.84 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($6.40 versus $2.84).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 66.8% when compared to the same quarter one year prior, rising from $20.98 million to $35.00 million.
  • Net operating cash flow has significantly increased by 689.99% to $94.50 million when compared to the same quarter last year. In addition, SYNAPTICS INC has also vastly surpassed the industry average cash flow growth rate of -3.96%.

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