Hecla Mining (HL) Stock: Weak On High Volume Today
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Hecla Mining as such a stock due to the following factors:
- HL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.2 million.
- HL has traded 817,990 shares today.
- HL is trading at 2.57 times the normal volume for the stock at this time of day.
- HL is trading at a new low 5.21% 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 HL:
Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, produces, and markets precious and base metal deposits worldwide. The stock currently has a dividend yield of 0.5%. Currently there are 2 analysts that rate Hecla Mining a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for Hecla Mining has been 6.3 million shares per day over the past 30 days. Hecla has a market cap of $827.2 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.50 and a short float of 9.1% with 4.72 days to cover. Shares are down 24.4% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Hecla Mining as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 369.0% when compared to the same quarter one year ago, falling from $3.68 million to -$9.89 million.
- 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. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, HECLA MINING CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for HECLA MINING CO is rather low; currently it is at 24.07%. It has decreased significantly from the same period last year.
- HECLA MINING CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HECLA MINING CO turned its bottom line around by earning $0.05 versus -$0.08 in the prior year. For the next year, the market is expecting a contraction of 300.0% in earnings (-$0.10 versus $0.05).
- Despite the weak revenue results, HL has outperformed against the industry average of 45.7%. Since the same quarter one year prior, revenues fell by 22.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full Hecla Mining Ratings Report.
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