Pixelworks, Inc. (NASDAQ:PXLW) Breaks Out?

Pixelworks, Inc. (NASDAQ:PXLW)

Pixelworks, Inc. (NASDAQ:PXLW) has performed well over the past quarter (+37.23%), year (+79.17%), and also YTD (+38.21%). Today volumes were strong and PXLW reached over the analyst’s consensus price target of $4.50. The average daily volume figure for PXLW is 339,500 but with almost an hour of trading left over 1.5 million shares had traded hands and PXLW had gained over 15%.

At the end of January, Pixelworks, Inc. (NASDAQ:PXLW) released their Q4 and full year financials. After that well received news, PXLW shares gained over 35% during the month of February. It is obvious that traders respond to news on PXLW shares which is what makes today’s price action curious. There is no news on the wires or chat boards.

The Average True Range (ATR) for PXLW is $0.21 which is expected given a stock with a price below $5. The ATR is used as a measure of a stock’s volatility and is a calculation based on the highs and lows a stock has reached over the trading day(s). Today the difference between the day’s high and low is $0.90 – more than four times the ATR.

Traders may be playing on the 52-week high figure which could represent a break-out. Prior to today’s trading shares of Pixelworks, Inc. (NASDAQ:PXLW) were less than 1% away. Some experts believe that traders are pushing the stock over that level to entice other traders, or trading programs, to recognize the price action breaking that high and buying into a momentum play. Volumes might point to some support for this – today’s volumes are over 5 ½ times the average daily volume.

Ticker Symbol PXLW
Last Price a/o 3:31 PM EST  $                      4.44
Average Volume                    339,250
Market Cap (mlns)  $                  114.20
Sales (mlns) $53.40
Shares Outstanding (mlns) 29.51
Share Float (mlns) 23.71
Shortable Yes
Optionable Yes
Inside Ownership 3.00%
Short Float 3.50%
Short Interest Ratio 4.56
Quarterly Return 37.23%
YTD Return 38.21%
Year Return 79.17%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.