DHT Holdings (DHT) Marked As A Dead Cat Bounce Stock

Trade-Ideas LLC identified DHT Holdings (DHT) as a "dead cat bounce" (down big yesterday but up big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

DHT Holdings

(

DHT

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified DHT Holdings as such a stock due to the following factors:

  • DHT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.8 million.
  • DHT has traded 245,603 shares today.
  • DHT is up 3.3% today.
  • DHT was down 8% yesterday.

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More details on DHT:

DHT Holdings, Inc., together with its subsidiaries, owns and operates crude oil tankers in Bermuda. As of March 16, 2016, its fleet consisted of 20 crude oil tankers, including 17 very large crude carriers (VLCC), 1 Suezmax tanker, and 2 Aframax tankers. The stock currently has a dividend yield of 20.1%. DHT has a PE ratio of 5. Currently there are 4 analysts that rate DHT Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for DHT Holdings has been 2.4 million shares per day over the past 30 days. DHT has a market cap of $464.0 million and is part of the services sector and transportation industry. The stock has a beta of 0.93 and a short float of 9% with 2.83 days to cover. Shares are down 43.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates DHT Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 24.1%. Since the same quarter one year prior, revenues rose by 12.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • DHT HOLDINGS INC has improved earnings per share by 30.4% 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, DHT HOLDINGS INC increased its bottom line by earning $1.03 versus $0.08 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $1.03).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 35.8% when compared to the same quarter one year prior, rising from $23.22 million to $31.53 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, DHT HOLDINGS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.

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