Trade-Ideas: Aegon (AEG) Is Today's Weak On High Relative Volume Stock

Trade-Ideas LLC identified Aegon (AEG) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Aegon

(

AEG

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

  • AEG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • AEG has traded 287,107 shares today.
  • AEG is trading at 5.06 times the normal volume for the stock at this time of day.
  • AEG is trading at a new low 11.06% 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 AEG:

Aegon N.V. provides life insurance, pensions, and asset management services. The company operates through the Americas, the Netherlands, the United Kingdom, and New Markets. The stock currently has a dividend yield of 3.7%. Currently there is 1 analyst that rates Aegon a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Aegon has been 1.5 million shares per day over the past 30 days. Aegon has a market cap of $16.4 billion and is part of the financial sector and insurance industry. Shares are down 18% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Aegon as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 131.1% when compared to the same quarter one year prior, rising from $174.56 million to $403.44 million.
  • AEG, with its very weak revenue results, has greatly underperformed against the industry average of 17.7%. Since the same quarter one year prior, revenues plummeted by 84.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly decreased to -$2,100.78 million or 338.93% 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 company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Insurance industry and the overall market, AEGON NV's return on equity is below that of both the industry average and the S&P 500.

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