Strong On High Relative Volume: Kennedy-Wilson Holdings (KW)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Kennedy-Wilson Holdings as such a stock due to the following factors:
- KW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.6 million.
- KW has traded 131,619 shares today.
- KW is trading at 15.78 times the normal volume for the stock at this time of day.
- KW is trading at a new high 3.03% 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 KW:
Kennedy-Wilson Holdings, Inc. operates as a real estate investment and services company in the United States, the United Kingdom, Ireland, Jersey, Spain, and Japan. It operates in two segments: KW Investments and KW Services. The stock currently has a dividend yield of 2%. Currently there are 3 analysts that rate Kennedy-Wilson Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Kennedy-Wilson Holdings has been 386,200 shares per day over the past 30 days. Kennedy-Wilson has a market cap of $2.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.96 and a short float of 5.6% with 12.20 days to cover. Shares are down 3.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Kennedy-Wilson Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the ratings report include:
- KW's very impressive revenue growth greatly exceeded the industry average of 12.6%. Since the same quarter one year prior, revenues leaped by 53.0%. 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 gross profit margin for KENNEDY-WILSON HOLDINGS INC is rather high; currently it is at 67.05%. Regardless of KW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KW's net profit margin of 22.63% significantly outperformed against the industry.
- KENNEDY-WILSON HOLDINGS INC's earnings per share declined by 28.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KENNEDY-WILSON HOLDINGS INC turned its bottom line around by earning $0.12 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus $0.12).
- The debt-to-equity ratio is very high at 3.57 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Management & Development industry and the overall market, KENNEDY-WILSON HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Kennedy-Wilson Holdings Ratings Report.
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