BP Prudhoe Bay Royalty (BPT) Weak On High Volume Today - TheStreet

Trade-Ideas LLC identified

BP Prudhoe Bay Royalty

(

BPT

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

  • BPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • BPT has traded 65,796 shares today.
  • BPT is trading at 4.31 times the normal volume for the stock at this time of day.
  • BPT is trading at a new low 3.21% 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 BPT:

BP Prudhoe Bay Royalty Trust operates as a grantor trust in the United States. The company holds overriding royalty interest comprising a non-operational interest in minerals in the Prudhoe Bay oil field located on the North Slope of Alaska. The stock currently has a dividend yield of 16.8%. BPT has a PE ratio of 13. Currently there are no analysts that rate BP Prudhoe Bay Royalty a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for BP Prudhoe Bay Royalty has been 177,700 shares per day over the past 30 days. BP Prudhoe Bay Royalty has a market cap of $749.0 million and is part of the basic materials sector and energy industry. Shares are down 47.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BP Prudhoe Bay Royalty as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • BPT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.35, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for BP PRUDHOE BAY ROYALTY TRUST is currently very high, coming in at 100.00%. BPT has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, BPT's net profit margin of 98.87% significantly outperformed against the industry.
  • Along with the very weak revenue results, BPT underperformed when compared to the industry average of 36.8%. Since the same quarter one year prior, revenues plummeted by 51.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • BP PRUDHOE BAY ROYALTY TRUST 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, BP PRUDHOE BAY ROYALTY TRUST increased its bottom line by earning $10.60 versus $9.04 in the prior year. For the next year, the market is expecting a contraction of 62.1% in earnings ($4.02 versus $10.60).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.48%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 51.48% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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