SVB Financial Group (SIVB) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SVB Financial Group as such a stock due to the following factors:
- SIVB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.0 million.
- SIVB has traded 78,929 shares today.
- SIVB is trading at 5.75 times the normal volume for the stock at this time of day.
- SIVB is trading at a new high 7.17% 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 SIVB:
SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. SIVB has a PE ratio of 22. Currently there are 11 analysts that rate SVB Financial Group a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for SVB Financial Group has been 543,100 shares per day over the past 30 days. SVB Financial Group has a market cap of $6.4 billion and is part of the financial sector and banking industry. The stock has a beta of 1.16 and a short float of 1.9% with 1.85 days to cover. Shares are up 10.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates SVB Financial Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 20.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SVB FINANCIAL GROUP has improved earnings per share by 28.7% 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 two years. We feel that this trend should continue. During the past fiscal year, SVB FINANCIAL GROUP increased its bottom line by earning $5.35 versus $4.69 in the prior year. This year, the market expects an improvement in earnings ($6.50 versus $5.35).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Banks industry average. The net income increased by 29.7% when compared to the same quarter one year prior, rising from $63.00 million to $81.73 million.
- 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 Commercial Banks industry and the overall market on the basis of return on equity, SVB FINANCIAL GROUP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full SVB Financial Group Ratings Report.
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