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

  • HIMX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.2 million.
  • HIMX has traded 597,130 shares today.
  • HIMX is trading at 3.38 times the normal volume for the stock at this time of day.
  • HIMX is trading at a new low 5.07% 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 HIMX:

Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. The company operates through Driver IC and Non-Driver Products segments. The stock currently has a dividend yield of 2.9%. HIMX has a PE ratio of 28. Currently there are 6 analysts that rate Himax Technologies a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Himax Technologies has been 2.7 million shares per day over the past 30 days. Himax has a market cap of $1.7 billion and is part of the technology sector and electronics industry. Shares are up 22.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Himax Technologies as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.43, which illustrates the ability to avoid short-term cash problems.
  • HIMX, with its decline in revenue, underperformed when compared the industry average of 3.2%. Since the same quarter one year prior, revenues fell by 21.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, HIMAX TECHNOLOGIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for HIMAX TECHNOLOGIES INC is rather low; currently it is at 24.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.44% significantly trails the industry average.

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