Hilton Worldwide Holdings (HLT): Today's Weak On High Volume Stock

Trade-Ideas LLC identified Hilton Worldwide Holdings (HLT) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Hilton Worldwide Holdings

(

HLT

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Hilton Worldwide Holdings as such a stock due to the following factors:

  • HLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $100.7 million.
  • HLT has traded 6.0 million shares today.
  • HLT is trading at 13.28 times the normal volume for the stock at this time of day.
  • HLT is trading at a new low 3.52% 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.

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

More details on HLT:

Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels, resorts, and timeshare properties worldwide. The stock currently has a dividend yield of 1.1%. HLT has a PE ratio of 33. Currently there are 11 analysts that rate Hilton Worldwide Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Hilton Worldwide Holdings has been 6.8 million shares per day over the past 30 days. Hilton Worldwide has a market cap of $24.8 billion and is part of the services sector and leisure industry. Shares are down 6.4% year-to-date as of the close of trading on Friday.

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 Hilton Worldwide Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • HLT's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 9.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HILTON WORLDWIDE HOLDINGS has improved earnings per share by 47.4% 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, HILTON WORLDWIDE HOLDINGS increased its bottom line by earning $0.68 versus $0.22 in the prior year. This year, the market expects an improvement in earnings ($0.82 versus $0.68).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, HILTON WORLDWIDE HOLDINGS has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has decreased to $343.00 million or 11.36% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio is very high at 2.07 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, HLT maintains a poor quick ratio of 0.77, which illustrates the inability to avoid short-term cash problems.

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 ...