Yadkin Financial (YDKN): Today's Weak On High Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Yadkin Financial as such a stock due to the following factors:
- YDKN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.1 million.
- YDKN has traded 1.3 million shares today.
- YDKN is trading at 52.22 times the normal volume for the stock at this time of day.
- YDKN is trading at a new low 6.09% 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 YDKN:
Yadkin Financial Corporation operates as the holding company for Yadkin Bank that provides commercial banking and financial services to individuals, businesses, business owners, and professionals. The stock currently has a dividend yield of 1.5%. YDKN has a PE ratio of 2. Currently there is 1 analyst that rates Yadkin Financial a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Yadkin Financial has been 286,800 shares per day over the past 30 days. Yadkin Financial has a market cap of $1.3 billion and is part of the financial sector and banking industry. The stock has a beta of 0.69 and a short float of 8.1% with 11.77 days to cover. Shares are up 3.1% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Yadkin Financial as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 24.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 339.22% to $19.75 million when compared to the same quarter last year. In addition, YADKIN FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -47.56%.
- The gross profit margin for YADKIN FINANCIAL CORP is currently very high, coming in at 87.77%. Regardless of YDKN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, YDKN's net profit margin of 11.90% is significantly lower than the industry average.
- YADKIN FINANCIAL CORP's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, YADKIN FINANCIAL CORP reported lower earnings of $1.37 versus $1.49 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $1.37).
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Yadkin Financial Ratings Report.
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