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 or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cumulus Media as such a stock due to the following factors:
- CMLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.1 million.
- CMLS has traded 601,321 shares today.
- CMLS is trading at 13.00 times the normal volume for the stock at this time of day.
- CMLS is trading at a new low 10.03% 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CMLS with the Ticky from Trade-Ideas. See the FREE profile for CMLS NOW at Trade-Ideas
More details on CMLS:
Cumulus Media Inc. owns and operates commercial radio station clusters in the United States. It sells local, regional, and national advertising for broadcast on its radio stations. CMLS has a PE ratio of 12.2. Currently there are 3 analysts that rate Cumulus Media a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Cumulus Media has been 2.8 million shares per day over the past 30 days. Cumulus Media has a market cap of $787.9 million and is part of the services sector and media industry. The stock has a beta of 2.53 and a short float of 17% with 12.90 days to cover. Shares are down 57.4% year-to-date as of the close of trading on Monday.
rates Cumulus Media as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 21.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CUMULUS MEDIA INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CUMULUS MEDIA INC turned its bottom line around by earning $0.10 versus -$0.67 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus $0.10).
- CMLS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 48.45%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- The gross profit margin for CUMULUS MEDIA INC is currently lower than what is desirable, coming in at 32.42%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.61% trails that of the industry average.
- You can view the full Cumulus Media Ratings Report.