Teekay (TK) Showing Signs Of Perilous Reversal Today

Trade-Ideas LLC identified Teekay ( TK) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Teekay as such a stock due to the following factors:

  • TK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.7 million.
  • TK has traded 346,672 shares today.
  • TK is down 3.1% today.
  • TK was up 7.5% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TK with the Ticky from Trade-Ideas. See the FREE profile for TK NOW at Trade-Ideas

More details on TK:

Teekay Corporation primarily provides crude oil and gas marine transportation services in Bermuda and internationally. The company operates through Offshore Logistics, Offshore Production, Liquefied Gas Carriers, and Conventional Tankers segments. The stock currently has a dividend yield of 3.6%. TK has a PE ratio of 5. Currently there is 1 analyst that rates Teekay a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Teekay has been 1.7 million shares per day over the past 30 days. Teekay has a market cap of $516.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.56 and a short float of 10.8% with 1.90 days to cover. Shares are down 37.2% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Teekay as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 24.1%. Since the same quarter one year prior, revenues rose by 17.4%. 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TEEKAY CORP's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 399.6% when compared to the same quarter one year ago, falling from -$9.76 million to -$48.78 million.
  • The debt-to-equity ratio is very high at 8.63 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, TK has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.