Trade-Ideas LLC identified

Bancorp

(

TBBK

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

  • TBBK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • TBBK has traded 164,316 shares today.
  • TBBK is trading at 10.24 times the normal volume for the stock at this time of day.
  • TBBK is trading at a new low 4.01% 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 TBBK:

The Bancorp, Inc. operates as the financial holding company for The Bancorp Bank that provides various commercial and retail, and related banking products and services to small and mid-size businesses, and their principals in the United States. TBBK has a PE ratio of 15. Currently there is 1 analyst that rates Bancorp a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Bancorp has been 174,200 shares per day over the past 30 days. has a market cap of $326.2 million and is part of the financial sector and banking industry. The stock has a beta of 1.01 and a short float of 4.9% with 4.06 days to cover. Shares are down 24.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bancorp as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, decline in the stock price during the past year and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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 Commercial Banks industry. The net income has significantly decreased by 129.9% when compared to the same quarter one year ago, falling from $7.32 million to -$2.19 million.
  • After a year of stock price fluctuations, the net result is that TBBK's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • BANCORP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BANCORP INC reported lower earnings of $0.24 versus $0.46 in the prior year. This year, the market expects an improvement in earnings ($0.36 versus $0.24).
  • Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BANCORP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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