Heavy Early Morning Activity On Groupon (GRPN)

Trade-Ideas LLC identified Groupon (GRPN) as a pre-market mover with heavy volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Groupon

(

GRPN

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Groupon as such a stock due to the following factors:

  • GRPN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.7 million.
  • GRPN traded 8.1 million shares today in the pre-market hours as of 8:41 AM, representing 126.5% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in GRPN with the Ticky from Trade-Ideas. See the FREE profile for GRPN NOW at Trade-Ideas

More details on GRPN:

Groupon, Inc. operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount worldwide. It also offers deals on products for which it acts as the merchant of record. Currently there are 7 analysts that rate Groupon a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Groupon has been 9.3 million shares per day over the past 30 days. Groupon has a market cap of $2.4 billion and is part of the technology sector and internet industry. The stock has a beta of 1.74 and a short float of 17.3% with 10.67 days to cover. Shares are down 53.6% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Groupon as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.17%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 50.00% compared to the year-earlier quarter. 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, GROUPON INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • GROUPON INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GROUPON INC continued to lose money by earning -$0.08 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.13 versus -$0.08).
  • 49.89% is the gross profit margin for GROUPON INC which we consider to be strong. Regardless of GRPN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GRPN's net profit margin of 14.77% significantly outperformed against the industry.
  • Net operating cash flow has significantly increased by 174.63% to $16.98 million when compared to the same quarter last year. In addition, GROUPON INC has also vastly surpassed the industry average cash flow growth rate of 53.39%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...