Century Aluminum (CENX) Weak On High Volume Today - TheStreet

Trade-Ideas LLC identified

Century Aluminum

(

CENX

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

  • CENX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
  • CENX has traded 1.5 million shares today.
  • CENX is trading at 12.39 times the normal volume for the stock at this time of day.
  • CENX is trading at a new low 22.14% 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 CENX:

Century Aluminum Company, together with its subsidiaries, produces primary aluminum in the United States and Iceland. It produces standard grade and value-added primary aluminum products; and carbon products, such as anodes and cathodes. CENX has a PE ratio of 3. Currently there is 1 analyst that rates Century Aluminum a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Century Aluminum has been 3.3 million shares per day over the past 30 days. Century Aluminum has a market cap of $343.3 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.69 and a short float of 43.8% with 4.98 days to cover. Shares are down 82.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Century Aluminum as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 46.5%. Since the same quarter one year prior, revenues rose by 14.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Metals & Mining industry and the overall market, CENTURY ALUMINUM CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • CENX's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that CENX's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
  • The gross profit margin for CENTURY ALUMINUM CO is currently extremely low, coming in at 7.32%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to -$5.95 million or 130.72% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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