Water-Logged And Getting Wetter: Affiliated Managers Group (AMG)
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Affiliated Managers Group as such a stock due to the following factors:
- AMG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.8 million.
- AMG has traded 340,717 shares today.
- AMG traded in a range 215.6% of the normal price range with a price range of $9.20.
- AMG traded below its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on AMG:
Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. AMG has a PE ratio of 28. Currently there are 6 analysts that rate Affiliated Managers Group a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Affiliated Managers Group has been 425,800 shares per day over the past 30 days. Affiliated Managers Group has a market cap of $10.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.25 and a short float of 1.3% with 2.29 days to cover. Shares are down 11% year-to-date as of the close of trading on Friday.
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Analysis:
rates Affiliated Managers Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- AMG's revenue growth has slightly outpaced the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 1.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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. In comparison to the other companies in the Capital Markets industry and the overall market, AFFILIATED MANAGERS GRP INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- AFFILIATED MANAGERS GRP INC has improved earnings per share by 32.0% 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, AFFILIATED MANAGERS GRP INC increased its bottom line by earning $7.99 versus $6.49 in the prior year. This year, the market expects an improvement in earnings ($12.75 versus $7.99).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 30.0% when compared to the same quarter one year prior, rising from $99.00 million to $128.70 million.
- Net operating cash flow has slightly increased to $351.40 million or 7.06% when compared to the same quarter last year. Despite an increase in cash flow of 7.06%, AFFILIATED MANAGERS GRP INC is still growing at a significantly lower rate than the industry average of 230.25%.
- You can view the full Affiliated Managers Group Ratings Report.
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