Michaels Companies (MIK) Is Today's Pre-Market Mover With Heavy Volume Stock

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

Trade-Ideas LLC identified

Michaels Companies

(

MIK

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

  • MIK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.6 million.
  • MIK traded 161,550 shares today in the pre-market hours as of 8:00 AM, representing 16.2% of its average daily volume.

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More details on MIK:

The Michaels Companies, Inc. owns and operates a chain of arts and crafts specialty retail stores under the Michaels and Aaron Brothers names in North America. Its Michaels stores offer approximately 35,000 stock-keeping units in crafts, home decor and seasonal, framing, and paper crafting. MIK has a PE ratio of 16. Currently there are 5 analysts that rate Michaels Companies a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Michaels Companies has been 1.1 million shares per day over the past 30 days. Michaels Companies has a market cap of $6.0 billion and is part of the services sector and specialty retail industry. Shares are up 30.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Michaels Companies as a

sell

. The area that we feel has been the company's primary weakness has been its poor profit margins.

Highlights from the ratings report include:

  • 42.96% is the gross profit margin for MICHAELS COS INC which we consider to be strong. Regardless of MIK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.10% trails the industry average.
  • After a year of stock price fluctuations, the net result is that MIK's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • MICHAELS COS INC has improved earnings per share by 6.3% 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, MICHAELS COS INC increased its bottom line by earning $1.73 versus $1.04 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.73).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 6.0% when compared to the same quarter one year prior, going from $66.74 million to $70.77 million.
  • Net operating cash flow has significantly increased by 68.69% to -$23.86 million when compared to the same quarter last year. In addition, MICHAELS COS INC has also vastly surpassed the industry average cash flow growth rate of -2.49%.

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