Blackstone Group (BX): Today's Weak On High Volume Stock - TheStreet

Trade-Ideas LLC identified

Blackstone Group

(

BX

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

  • BX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $158.2 million.
  • BX has traded 381,506 shares today.
  • BX is trading at 2.21 times the normal volume for the stock at this time of day.
  • BX is trading at a new low 3.02% 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 BX:

The Blackstone Group L.P. is a publicly owned investment manager. The firm also provides financial advisory services to its clients. It provides its services to public and corporate pension funds, academic, cultural, and charitable organizations. The stock currently has a dividend yield of 8.4%. BX has a PE ratio of 14. Currently there are 11 analysts that rate Blackstone Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Blackstone Group has been 5.5 million shares per day over the past 30 days. Blackstone Group has a market cap of $21.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.35 and a short float of 2.5% with 2.85 days to cover. Shares are up 0.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Blackstone Group as a

buy

. Among the primary strengths of the company is its 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:

  • BX, with its very weak revenue results, has greatly underperformed against the industry average of 5.1%. Since the same quarter one year prior, revenues plummeted by 99.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • BLACKSTONE GROUP LP 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BLACKSTONE GROUP LP increased its bottom line by earning $2.59 versus $1.98 in the prior year. For the next year, the market is expecting a contraction of 11.2% in earnings ($2.30 versus $2.59).
  • 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 Capital Markets industry. The net income has significantly decreased by 201.7% when compared to the same quarter one year ago, falling from $250.51 million to -$254.70 million.

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