Atwood Oceanics (ATW) Is Weak On High Volume Today

Trade-Ideas LLC identified Atwood Oceanics (ATW) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Atwood Oceanics

(

ATW

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Atwood Oceanics as such a stock due to the following factors:

  • ATW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.3 million.
  • ATW has traded 473,080 shares today.
  • ATW is trading at 2.18 times the normal volume for the stock at this time of day.
  • ATW is trading at a new low 5.01% 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 ATW:

Atwood Oceanics, Inc., an offshore drilling contractor, engages in the drilling and completion of exploratory and developmental oil and gas wells worldwide. The stock currently has a dividend yield of 2.6%. ATW has a PE ratio of 2. Currently there are 2 analysts that rate Atwood Oceanics a buy, 4 analysts rate it a sell, and 7 rate it a hold.

The average volume for Atwood Oceanics has been 4.3 million shares per day over the past 30 days. Atwood Oceanics has a market cap of $802.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.41 and a short float of 53.6% with 5.02 days to cover. Shares are up 19% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Atwood Oceanics as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.97, which clearly demonstrates the ability to cover short-term cash needs.
  • 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. In comparison to the other companies in the Energy Equipment & Services industry and the overall market, ATWOOD OCEANICS's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Despite the weak revenue results, ATW has outperformed against the industry average of 35.8%. Since the same quarter one year prior, revenues fell by 15.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Energy Equipment & Services industry average, but is less than that of the S&P 500. The net income has decreased by 0.2% when compared to the same quarter one year ago, dropping from $122.67 million to $122.44 million.
  • ATW'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 52.53%, which is also worse than the performance of the S&P 500 Index. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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