Trade-Ideas LLC identified

Ameris Bancorp

(

ABCB

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ameris Bancorp as such a stock due to the following factors:

  • ABCB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.7 million.
  • ABCB has traded 76,989 shares today.
  • ABCB is trading at 5.56 times the normal volume for the stock at this time of day.
  • ABCB is trading at a new low 8.04% 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.

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

More details on ABCB:

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides banking services to retail and commercial customers in Georgia, Alabama, Florida, and South Carolina. The company operates through three segments: Banking Division, Mortgage Division, and SBA Division. The stock currently has a dividend yield of 0.7%. ABCB has a PE ratio of 24. Currently there are 2 analysts that rate Ameris Bancorp a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Ameris Bancorp has been 347,100 shares per day over the past 30 days. Ameris has a market cap of $952.0 million and is part of the financial sector and banking industry. The stock has a beta of 0.84 and a short float of 7.6% with 8.23 days to cover. Shares are down 14% year-to-date as of the close of trading on Thursday.

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 Ameris Bancorp as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, 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 somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 24.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Banks industry average. The net income increased by 34.0% when compared to the same quarter one year prior, rising from $11.66 million to $15.63 million.
  • Net operating cash flow has significantly increased by 96.51% to -$0.73 million when compared to the same quarter last year. In addition, AMERIS BANCORP has also vastly surpassed the industry average cash flow growth rate of -12.38%.
  • The gross profit margin for AMERIS BANCORP is currently very high, coming in at 93.72%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 20.51% trails the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.80% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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.