Trade-Ideas: Tower Group (TWGP) Is Today's "Dead Cat Bounce" Stock
- TWGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.2 million.
- TWGP has traded 1.5 million shares today.
- TWGP is up 3.3% today.
- TWGP was down 6.6% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TWGP with the Ticky from Trade-Ideas. See the FREE profile for TWGP NOW at Trade-Ideas More details on TWGP: Tower Group International, Ltd., through its subsidiaries, underwrites insurance and reinsurance products in Bermuda, the United States, and London markets. The company provides commercial, personal, and specialty insurance and reinsurance products. The stock currently has a dividend yield of 3.8%. Currently there is 1 analyst that rates Tower Group a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Tower Group has been 257,700 shares per day over the past 30 days. Tower Group has a market cap of $758.4 million and is part of the financial sector and insurance industry. The stock has a beta of 1.00 and a short float of 8.4% with 1.09 days to cover. Shares are up 11% year to date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Tower Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow. Highlights from the ratings report include:
- TWGP's revenue growth has slightly outpaced the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 1.9%. 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.
- The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels.
- TOWER GROUP INTL LTD's earnings per share declined by 13.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TOWER GROUP INTL LTD swung to a loss, reporting -$0.71 versus $1.29 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus -$0.71).
- The gross profit margin for TOWER GROUP INTL LTD is currently extremely low, coming in at 7.85%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.17% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$53.11 million or 272.06% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Tower Group Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.