Sothebys (BID) Is Strong On High Volume Today
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sothebys as such a stock due to the following factors:
- BID has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.6 million.
- BID has traded 163,246 shares today.
- BID is trading at 2.64 times the normal volume for the stock at this time of day.
- BID is trading at a new high 3.14% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 BID:
Sotheby's operates as an auctioneer of authenticated fine art, decorative art, jewelry, wine, and collectibles in the United States, the United Kingdom, China, France, Switzerland, and internationally. The company operates through two segments, Agency and Finance. The stock currently has a dividend yield of 1.5%. BID has a PE ratio of 174. Currently there are no analysts that rate Sothebys a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Sothebys has been 1.3 million shares per day over the past 30 days. Sothebys has a market cap of $1.6 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.82 and a short float of 25.2% with 9.65 days to cover. Shares are up 8.9% year-to-date as of the close of trading on Friday.
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Analysis:
rates Sothebys as a
. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- Despite the current debt-to-equity ratio of 1.83, it is still below the industry average, suggesting that this level of debt is acceptable within the Diversified Consumer Services industry. Despite the fact that BID's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.85 is high and demonstrates strong liquidity.
- BID, with its decline in revenue, underperformed when compared the industry average of 7.6%. Since the same quarter one year prior, revenues fell by 31.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- SOTHEBY'S 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SOTHEBY'S reported lower earnings of $0.60 versus $1.68 in the prior year. This year, the market expects an improvement in earnings ($1.70 versus $0.60).
- The gross profit margin for SOTHEBY'S is currently extremely low, coming in at 12.85%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -24.29% is significantly below that of the industry average.
- Net operating cash flow has declined marginally to -$303.24 million or 9.32% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, SOTHEBY'S has marginally lower results.
- You can view the full Sothebys Ratings Report.
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