Trade-Ideas LLC identified LogMeIn ( LOGM) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified LogMeIn as such a stock due to the following factors:
- LOGM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.1 million.
- LOGM has traded 106,296 shares today.
- LOGM is trading at 17.86 times the normal volume for the stock at this time of day.
- LOGM is trading at a new high 16.15% 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in LOGM with the Ticky from Trade-Ideas. See the FREE profile for LOGM NOW at Trade-Ideas More details on LOGM: LogMeIn, Inc. provides cloud-based services for individuals and businesses to securely connect to their workplace, colleagues, and customers. LOGM has a PE ratio of 94. Currently there are 7 analysts that rate LogMeIn a buy, 1 analyst rates it a sell, and 1 rates it a hold. The average volume for LogMeIn has been 313,200 shares per day over the past 30 days. LogMeIn has a market cap of $1.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.46 and a short float of 10.8% with 5.78 days to cover. Shares are down 21.3% year-to-date as of the close of trading on Thursday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates LogMeIn as a hold. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow. Highlights from the ratings report include:
- LOGM's revenue growth has slightly outpaced the industry average of 20.4%. Since the same quarter one year prior, revenues rose by 27.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although LOGM's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for LOGMEIN INC is currently very high, coming in at 90.97%. Regardless of LOGM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LOGM's net profit margin of 8.19% is significantly lower than the industry average.
- Net operating cash flow has declined marginally to $13.76 million or 9.89% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- LOGM has underperformed the S&P 500 Index, declining 11.88% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full LogMeIn Ratings Report.
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