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 $37.9 million.
  • SYNA has traded 906,277 shares today.
  • SYNA traded in a range 258.4% of the normal price range with a price range of $4.86.
  • SYNA traded below its daily resistance level (quality: 138 days, meaning that the stock is crossing a resistance level set by the last 138 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 23. Currently there are 5 analysts that rate Synaptics a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Synaptics has been 674,500 shares per day over the past 30 days. Synaptics has a market cap of $2.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.04 and a short float of 13% with 6.85 days to cover. Shares are down 17.2% year-to-date as of the close of trading on Monday.

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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 largely solid financial position with reasonable debt levels by most measures, 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:
  • SYNA's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SYNA has a quick ratio of 2.03, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 41.07% is the gross profit margin for SYNAPTICS INC which we consider to be strong. 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 5.09% trails the industry average.
  • SYNAPTICS INC's earnings per share declined by 34.1% in the most recent quarter compared to the same quarter a year ago. 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, 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 ($4.75 versus $2.84).
  • SYNA, with its decline in revenue, underperformed when compared the industry average of 5.9%. Since the same quarter one year prior, revenues fell by 15.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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