Monotype Imaging Holdings (TYPE) Strong On High Relative Volume Today

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

  • TYPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.5 million.
  • TYPE has traded 80,289 shares today.
  • TYPE is trading at 12.59 times the normal volume for the stock at this time of day.
  • TYPE is trading at a new high 3.03% 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 TYPE:

Monotype Imaging Holdings Inc. develops, markets, and licenses technologies and fonts in the United States, the United Kingdom, Germany, Japan, and rest of Asia. The stock currently has a dividend yield of 2.2%. TYPE has a PE ratio of 33. Currently there are 3 analysts that rate Monotype Imaging Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Monotype Imaging Holdings has been 197,200 shares per day over the past 30 days. Monotype Imaging has a market cap of $805.1 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.02 and a short float of 1.9% with 1.40 days to cover. Shares are down 16.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Monotype Imaging Holdings 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • TYPE's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • TYPE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.47, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has slightly increased to $11.19 million or 2.44% when compared to the same quarter last year. Despite an increase in cash flow, MONOTYPE IMAGING HOLDINGS's cash flow growth rate is still lower than the industry average growth rate of 22.08%.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 27.2% when compared to the same quarter one year ago, falling from $7.36 million to $5.36 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Software industry and the overall market, MONOTYPE IMAGING HOLDINGS's return on equity is below that of both the industry average and the S&P 500.

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