Strong On High Volume: Deutsche Bank (DB)

Trade-Ideas LLC identified Deutsche Bank (DB) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Deutsche Bank

(

DB

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Deutsche Bank as such a stock due to the following factors:

  • DB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.7 million.
  • DB has traded 290,791 shares today.
  • DB is trading at 2.01 times the normal volume for the stock at this time of day.
  • DB is trading at a new high 3.01% 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 DB:

Deutsche Bank AG provides investment, financial, and related products and services worldwide. Its Corporate Banking & Securities division engages in selling, trading, and structuring a range of fixed income, equity, equity-linked, foreign exchange, and commodities products. The stock currently has a dividend yield of 3%. DB has a PE ratio of 31. Currently there is 1 analyst that rates Deutsche Bank a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Deutsche Bank has been 2.3 million shares per day over the past 30 days. Deutsche has a market cap of $38.5 billion and is part of the financial sector and banking industry. Shares are down 6.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Deutsche Bank as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:

  • DB has underperformed the S&P 500 Index, declining 10.61% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • Net operating cash flow has significantly decreased to -$16,096.55 million or 396.06% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, DEUTSCHE BANK AG underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.7%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for DEUTSCHE BANK AG is currently very high, coming in at 75.47%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, DB's net profit margin of 6.54% significantly trails the industry average.

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