Altisource Portfolio Solutions (ASPS) Stock: Weak 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
Altisource Portfolio Solutions
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Altisource Portfolio Solutions as such a stock due to the following factors:
- ASPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
- ASPS has traded 71,727 shares today.
- ASPS is trading at 2.25 times the normal volume for the stock at this time of day.
- ASPS is trading at a new low 4.03% 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 ASPS:
Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. ASPS has a PE ratio of 2.9. Currently there is 1 analyst that rates Altisource Portfolio Solutions a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Altisource Portfolio Solutions has been 807,300 shares per day over the past 30 days. Altisource has a market cap of $330.0 million and is part of the services sector and diversified services industry. The stock has a beta of 1.20 and a short float of 20.7% with 6.32 days to cover. Shares are down 55.2% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Altisource Portfolio Solutions as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 36.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, ALTISOURCE PORTFOLIO SOLTNS's return on equity significantly exceeds that of both the industry average and the S&P 500.
- 36.35% is the gross profit margin for ALTISOURCE PORTFOLIO SOLTNS which we consider to be strong. Regardless of ASPS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 14.69% trails the industry average.
- ASPS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 83.95%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Net operating cash flow has significantly decreased to $14.17 million or 78.90% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Altisource Portfolio Solutions Ratings Report.
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