BlackRock Kelso Capital Corporation (BKCC) Is Today's Strong On High Volume Stock
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 or Stephanie Link.
Trade-Ideas LLC identified
BlackRock Kelso Capital Corporation
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified BlackRock Kelso Capital Corporation as such a stock due to the following factors:
- BKCC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
- BKCC has traded 161,435 shares today.
- BKCC is trading at 6.38 times the normal volume for the stock at this time of day.
- BKCC is trading at a new high 3.04% 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 BKCC:
BlackRock Kelso Capital Corporation is Business Development Company specializing in investments in middle market companies. The fund invests in all industries. The stock currently has a dividend yield of 9.4%. BKCC has a PE ratio of 6.3. Currently there is 1 analyst that rates BlackRock Kelso Capital Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for BlackRock Kelso Capital Corporation has been 405,300 shares per day over the past 30 days. BlackRock Kelso has a market cap of $667.2 million and is part of the financial sector and financial services industry. Shares are up 8.3% year-to-date as of the close of trading on Wednesday.
Analysis:
rates BlackRock Kelso Capital Corporation as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 12.8%. Since the same quarter one year prior, revenues slightly increased by 5.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Capital Markets industry and the overall market, BLACKROCK KELSO CAPITAL CORP's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for BLACKROCK KELSO CAPITAL CORP is currently very high, coming in at 75.81%. It has increased significantly from the same period last year. Along with this, the net profit margin of 87.35% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 53.03% to -$51.77 million when compared to the same quarter last year. In addition, BLACKROCK KELSO CAPITAL CORP has also vastly surpassed the industry average cash flow growth rate of -6.01%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 46.0% when compared to the same quarter one year prior, rising from $19.84 million to $28.97 million.
- You can view the full BlackRock Kelso Capital Corporation Ratings Report.
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