PDC Energy (PDCE): Today's Weak On High Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified PDC Energy as such a stock due to the following factors:
- PDCE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.9 million.
- PDCE has traded 253,954 shares today.
- PDCE is trading at 9.93 times the normal volume for the stock at this time of day.
- PDCE is trading at a new low 5.10% 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 PDCE:
PDC Energy, Inc., an independent exploration and production company, acquires, explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the United States. The company operates in two segments: Oil and Gas Exploration and Production, and Gas Marketing. PDCE has a PE ratio of 132. Currently there are 18 analysts that rate PDC Energy a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for PDC Energy has been 1.0 million shares per day over the past 30 days. PDC Energy has a market cap of $2.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.53 and a short float of 21.1% with 7.11 days to cover. Shares are up 44.8% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates PDC Energy as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, PDCE's share price has jumped by 39.55%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Net operating cash flow has increased to $64.58 million or 26.38% when compared to the same quarter last year. In addition, PDC ENERGY INC has also vastly surpassed the industry average cash flow growth rate of -27.14%.
- The gross profit margin for PDC ENERGY INC is rather high; currently it is at 52.29%. Regardless of PDCE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PDCE's net profit margin of -91.97% significantly underperformed when compared to the industry average.
- PDC ENERGY INC's earnings per share declined by 42.7% in the most recent quarter compared to 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, PDC ENERGY INC turned its bottom line around by earning $2.93 versus -$0.76 in the prior year. For the next year, the market is expecting a contraction of 51.5% in earnings ($1.42 versus $2.93).
- Despite currently having a low debt-to-equity ratio of 0.50, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.30 is very low and demonstrates very weak liquidity.
- You can view the full PDC Energy Ratings Report.
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