Weak On High Volume: South Jersey Industries (SJI)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified South Jersey Industries as such a stock due to the following factors:
- SJI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.7 million.
- SJI has traded 90,285 shares today.
- SJI is trading at 7.92 times the normal volume for the stock at this time of day.
- SJI is trading at a new low 6.04% 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 SJI:
South Jersey Industries, Inc., through its subsidiaries, provides energy related products and services. It engages in the purchase, transmission, and sale of natural gas. The stock currently has a dividend yield of 3.7%. SJI has a PE ratio of 17. Currently there are 2 analysts that rate South Jersey Industries a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for South Jersey Industries has been 349,400 shares per day over the past 30 days. South Jersey has a market cap of $1.8 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.77 and a short float of 3% with 6.56 days to cover. Shares are down 10.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates South Jersey Industries as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 19.9%. Since the same quarter one year prior, revenues rose by 33.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SOUTH JERSEY INDUSTRIES INC has improved earnings per share by 31.0% 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 year. We feel that this trend should continue. During the past fiscal year, SOUTH JERSEY INDUSTRIES INC increased its bottom line by earning $1.47 versus $1.29 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $1.47).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Gas Utilities industry. The net income increased by 37.9% when compared to the same quarter one year prior, rising from $9.62 million to $13.27 million.
- Net operating cash flow has significantly increased by 65.99% to $67.12 million when compared to the same quarter last year. In addition, SOUTH JERSEY INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of 0.35%.
- 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 Gas Utilities industry and the overall market on the basis of return on equity, SOUTH JERSEY INDUSTRIES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full South Jersey Industries Ratings Report.
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