Trade-Ideas: Acxiom (ACXM) Is Today's Strong On High Relative Volume Stock

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

  • ACXM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.5 million.
  • ACXM has traded 54,221 shares today.
  • ACXM is trading at 4.21 times the normal volume for the stock at this time of day.
  • ACXM is trading at a new high 5.02% 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.

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More details on ACXM:

Acxiom Corporation operates as an enterprise data, analytics, and software-as-a-service company in the United States, Europe, South America, and the Asia-Pacific. It operates through two segments, Marketing and Data Services, and IT Infrastructure Management. ACXM has a PE ratio of 222. Currently there are 2 analysts that rate Acxiom a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Acxiom has been 426,800 shares per day over the past 30 days. Acxiom has a market cap of $1.6 billion and is part of the technology sector and computer software & services industry. Shares are down 5.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Acxiom as a hold. 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 and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.0%. Since the same quarter one year prior, revenues slightly increased by 9.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ACXM's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, ACXM has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for ACXIOM CORP is rather high; currently it is at 54.87%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.69% is in-line with the industry average.
  • Net operating cash flow has increased to $39.32 million or 14.11% when compared to the same quarter last year. Despite an increase in cash flow, ACXIOM CORP's cash flow growth rate is still lower than the industry average growth rate of 31.55%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the IT Services industry and the overall market, ACXIOM CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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