Trade-Ideas LLC identified

BankUnited

(

BKU

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

  • BKU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.1 million.
  • BKU has traded 206,606 shares today.
  • BKU is trading at 7.46 times the normal volume for the stock at this time of day.
  • BKU is trading at a new low 4.03% 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 BKU:

TheStreet Recommends

BankUnited, Inc. operates as the bank holding company for BankUnited, National Association that provides a range of banking services to small and medium sized businesses, and individual customers in the United States. The stock currently has a dividend yield of 2.6%. BKU has a PE ratio of 13. Currently there are 7 analysts that rate BankUnited a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for BankUnited has been 781,200 shares per day over the past 30 days. BankUnited has a market cap of $3.4 billion and is part of the financial sector and banking industry. The stock has a beta of 1.01 and a short float of 4.3% with 4.91 days to cover. Shares are down 6.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BankUnited as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including premium valuation and a decline in the stock price during the past year.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 18.1% when compared to the same quarter one year prior, going from $46.46 million to $54.87 million.
  • 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 Commercial Banks industry and the overall market on the basis of return on equity, BANKUNITED INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • After a year of stock price fluctuations, the net result is that BKU'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.

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