Today's Weak On High Volume Stock: Umpqua Holdings (UMPQ)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Umpqua Holdings as such a stock due to the following factors:
- UMPQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.9 million.
- UMPQ has traded 1.3 million shares today.
- UMPQ is trading at 2.80 times the normal volume for the stock at this time of day.
- UMPQ is trading at a new low 3.03% 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 UMPQ:
Umpqua Holdings Corporation, through its subsidiaries, engages in the commercial and retail banking, and retail brokerage businesses. It operates through Community Banking and Home Lending segments. The stock currently has a dividend yield of 4%. UMPQ has a PE ratio of 16. Currently there are 2 analysts that rate Umpqua Holdings a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Umpqua Holdings has been 1.8 million shares per day over the past 30 days. Umpqua has a market cap of $3.5 billion and is part of the financial sector and banking industry. The stock has a beta of 1.11 and a short float of 5.7% with 5.69 days to cover. Shares are down 0.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Umpqua Holdings as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, growth in earnings per share, expanding profit margins, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 276.04% to $42.84 million when compared to the same quarter last year. In addition, UMPQUA HOLDINGS CORP has also vastly surpassed the industry average cash flow growth rate of -47.56%.
- UMPQUA HOLDINGS CORP's earnings per share improvement from the most recent quarter was slightly positive. 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, UMPQUA HOLDINGS CORP increased its bottom line by earning $1.01 versus $0.76 in the prior year. This year, the market expects an improvement in earnings ($1.13 versus $1.01).
- The gross profit margin for UMPQUA HOLDINGS CORP is currently very high, coming in at 92.43%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 16.98% trails the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 0.9% when compared to the same quarter one year prior, going from $47.13 million to $47.57 million.
- UMPQ, with its decline in revenue, slightly underperformed the industry average of 1.3%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Umpqua Holdings Ratings Report.
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