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

  • CVT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.5 million.
  • CVT has traded 159,903 shares today.
  • CVT is trading at 2.18 times the normal volume for the stock at this time of day.
  • CVT is trading at a new low 4.01% 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 CVT:

Cvent, Inc. provides a cloud-based enterprise event management platform with solutions for corporate events and meetings in North America and internationally. Currently there are no analysts that rate Cvent a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Cvent has been 717,700 shares per day over the past 30 days. Cvent has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. Shares are down 5.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cvent as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from the ratings report include:
  • 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. Compared to other companies in the Internet Software & Services industry and the overall market, CVENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CVENT INC reported significant earnings per share improvement 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, CVENT INC swung to a loss, reporting -$0.46 versus $0.03 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.46).
  • The gross profit margin for CVENT INC is currently very high, coming in at 81.99%. 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 -2.28% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 161.69% to $37.65 million when compared to the same quarter last year. In addition, CVENT INC has also vastly surpassed the industry average cash flow growth rate of 19.55%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 49.1% when compared to the same quarter one year prior, rising from -$2.35 million to -$1.20 million.

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