Actuant (ATU) Is Strong On High Volume Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Actuant as such a stock due to the following factors:
- ATU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.7 million.
- ATU has traded 101,185 shares today.
- ATU is trading at 5.50 times the normal volume for the stock at this time of day.
- ATU is trading at a new high 3.01% 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 ATU:
Actuant Corporation designs, manufactures, and distributes a range of industrial products and systems worldwide. It operates in three segments: Industrial, Energy, and Engineered Solutions. The stock currently has a dividend yield of 0.2%. ATU has a PE ratio of 13.0. Currently there are 3 analysts that rate Actuant a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Actuant has been 730,900 shares per day over the past 30 days. Actuant has a market cap of $1.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.31 and a short float of 4.3% with 4.35 days to cover. Shares are down 9.9% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Actuant as a
. 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 notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and weak operating cash flow.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.22, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market on the basis of return on equity, ACTUANT CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Machinery industry. The net income has significantly decreased by 31.5% when compared to the same quarter one year ago, falling from $36.04 million to $24.67 million.
- Net operating cash flow has significantly decreased to -$25.12 million or 176.23% 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 Actuant Ratings Report.
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