Boardwalk Pipeline Partners (BWP) Is Strong On High Volume Today

Trade-Ideas LLC identified Boardwalk Pipeline Partners (BWP) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Boardwalk Pipeline Partners

(

BWP

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Boardwalk Pipeline Partners as such a stock due to the following factors:

  • BWP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • BWP has traded 121,907 shares today.
  • BWP is trading at 6.22 times the normal volume for the stock at this time of day.
  • BWP is trading at a new high 5.07% 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 BWP:

Boardwalk Pipeline Partners, LP, through its subsidiaries, provides transportation, storage, gathering, and processing services for natural gas and natural gas liquids (NGLs). The company operates interstate natural gas and NGLs pipeline systems, including integrated storage facilities. The stock currently has a dividend yield of 3.2%. BWP has a PE ratio of 17. Currently there are 4 analysts that rate Boardwalk Pipeline Partners a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Boardwalk Pipeline Partners has been 892,500 shares per day over the past 30 days. Boardwalk Pipeline has a market cap of $3.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.43 and a short float of 4.1% with 8.15 days to cover. Shares are down 27.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Boardwalk Pipeline Partners as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 33.1%. Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for BOARDWALK PIPELINE PRTNRS-LP is rather high; currently it is at 55.86%. Regardless of BWP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BWP's net profit margin of 13.52% compares favorably to the industry average.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 29.6% when compared to the same quarter one year ago, falling from $57.40 million to $40.40 million.
  • BOARDWALK PIPELINE PRTNRS-LP's earnings per share declined by 30.4% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, BOARDWALK PIPELINE PRTNRS-LP reported lower earnings of $0.94 versus $0.99 in the prior year. For the next year, the market is expecting a contraction of 15.9% in earnings ($0.79 versus $0.94).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BOARDWALK PIPELINE PRTNRS-LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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