Macquarie Infrastructure (MIC) Marked As A Barbarian At The Gate
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Macquarie Infrastructure as such a stock due to the following factors:
- MIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.8 million.
- MIC has traded 87,902 shares today.
- MIC traded in a range 240.7% of the normal price range with a price range of $3.36.
- MIC traded above its daily resistance level (quality: 89 days, meaning that the stock is crossing a resistance level set by the last 89 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on MIC:
Macquarie Infrastructure Company LLC, through its subsidiaries, owns, operates, and invests in infrastructure businesses that provide services to businesses and individuals primarily in the United States. The stock currently has a dividend yield of 5.6%. MIC has a PE ratio of 6. Currently there are 6 analysts that rate Macquarie Infrastructure a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Macquarie Infrastructure has been 649,200 shares per day over the past 30 days. Macquarie Infrastructure has a market cap of $6.3 billion and is part of the services sector and transportation industry. The stock has a beta of 0.82 and a short float of 4.4% with 6.58 days to cover. Shares are up 12.3% year-to-date as of the close of trading on Monday.
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Analysis:
rates Macquarie Infrastructure as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- MIC's very impressive revenue growth exceeded the industry average of 33.7%. Since the same quarter one year prior, revenues leaped by 50.8%. 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 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. When compared to other companies in the Transportation Infrastructure industry and the overall market, MACQUARIE INFRASTRUCTURE CP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Net operating cash flow has slightly increased to $76.93 million or 6.46% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -13.13%.
- The gross profit margin for MACQUARIE INFRASTRUCTURE CP is rather high; currently it is at 54.29%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -14.89% is in-line with the industry average.
- You can view the full Macquarie Infrastructure Ratings Report.
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