Weak On High Volume: Anworth Mortgage Asset (ANH)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Anworth Mortgage Asset as such a stock due to the following factors:
- ANH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
- ANH has traded 300,868 shares today.
- ANH is trading at 6.08 times the normal volume for the stock at this time of day.
- ANH is trading at a new low 3.12% 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 ANH:
Anworth Mortgage Asset Corporation operates as a real estate investment trust in the United States. The stock currently has a dividend yield of 12.6%. ANH has a PE ratio of 239. Currently there are no analysts that rate Anworth Mortgage Asset a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Anworth Mortgage Asset has been 923,000 shares per day over the past 30 days. Anworth Mortgage Asset has a market cap of $489.6 million and is part of the financial sector and real estate industry. The stock has a beta of 0.33 and a short float of 2.1% with 2.68 days to cover. Shares are down 8.4% year-to-date as of the close of trading on Monday.
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Analysis:
rates Anworth Mortgage Asset as a
. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and disappointing return on equity.
Highlights from the ratings report include:
- ANH has underperformed the S&P 500 Index, declining 6.23% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ANWORTH MTG ASSET CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- ANH, with its decline in revenue, underperformed when compared the industry average of 6.2%. Since the same quarter one year prior, revenues fell by 17.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- ANWORTH MTG ASSET CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ANWORTH MTG ASSET CORP reported lower earnings of $0.18 versus $0.49 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus $0.18).
- The gross profit margin for ANWORTH MTG ASSET CORP is currently very high, coming in at 90.15%. Regardless of ANH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ANH's net profit margin of 56.17% significantly outperformed against the industry.
- You can view the full Anworth Mortgage Asset Ratings Report.
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