Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Charter Communications

(

CHTR

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Charter Communications as such a stock due to the following factors:

  • CHTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $132.5 million.
  • CHTR traded 170,538 shares today in the pre-market hours as of 8:41 AM, representing 25.1% of its average daily volume.

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More details on CHTR:

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. Currently there are 6 analysts that rate Charter Communications a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Charter Communications has been 923,500 shares per day over the past 30 days. Charter has a market cap of $20.4 billion and is part of the services sector and media industry. The stock has a beta of 0.86 and a short float of 4.4% with 5.34 days to cover. Shares are up 8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Charter Communications as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • CHTR's revenue growth has slightly outpaced the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 9.9%. 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.
  • Compared to its closing price of one year ago, CHTR's share price has jumped by 47.63%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Net operating cash flow has slightly increased to $630.00 million or 5.88% when compared to the same quarter last year. Despite an increase in cash flow, CHARTER COMMUNICATIONS INC's cash flow growth rate is still lower than the industry average growth rate of 47.71%.
  • The debt-to-equity ratio is very high at 143.99 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.18, which clearly demonstrates the inability to cover short-term cash needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, CHARTER COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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