Bitauto Holdings (BITA) Weak On High Volume
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 weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Bitauto Holdings as such a stock due to the following factors:
- BITA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.2 million.
- BITA has traded 168,491 shares today.
- BITA is trading at 3.36 times the normal volume for the stock at this time of day.
- BITA is trading at a new low 3.05% 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 BITA:
Bitauto Holdings Limited provides Internet content and marketing services for the automotive industry primarily in the People's Republic of China. BITA has a PE ratio of 93.0. Currently there are 2 analysts that rate Bitauto Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Bitauto Holdings has been 1.2 million shares per day over the past 30 days. Bitauto has a market cap of $2.2 billion and is part of the technology sector and internet industry. Shares are down 32.4% year-to-date as of the close of trading on Friday.
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Analysis:
rates Bitauto Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- BITA's very impressive revenue growth greatly exceeded the industry average of 18.6%. Since the same quarter one year prior, revenues leaped by 62.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BITA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, BITA has a quick ratio of 2.13, which demonstrates the ability of the company to cover short-term liquidity 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 Internet Software & Services industry and the overall market, BITAUTO HOLDINGS LTD -ADR's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The gross profit margin for BITAUTO HOLDINGS LTD -ADR is currently very high, coming in at 80.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.44% is above that of the industry average.
- BITAUTO HOLDINGS LTD -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BITAUTO HOLDINGS LTD -ADR increased its bottom line by earning $0.95 versus $0.53 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus $0.95).
- You can view the full Bitauto Holdings Ratings Report.
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