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 DHT Holdings as such a stock due to the following factors:
- DHT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.3 million.
- DHT has traded 570,647 shares today.
- DHT is trading at 3.54 times the normal volume for the stock at this time of day.
- DHT is trading at a new low 4.10% 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 DHT:
DHT Holdings, Inc. operates as an independent crude oil tanker company. As of February 27, 2014, its fleet consisted of 10 double-hull crude oil tankers, including 6 crude oil tankers in the very large crude carriers, 2 Suezmax tankers, and two Aframax tankers. The stock currently has a dividend yield of 1%. Currently there are 4 analysts that rate DHT Holdings a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for DHT Holdings has been 1.8 million shares per day over the past 30 days. DHT has a market cap of $727.9 million and is part of the services sector and transportation industry. The stock has a beta of 2.40 and a short float of 6.9% with 1.58 days to cover. Shares are up 6.7% year-to-date as of the close of trading on Thursday.
rates DHT Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- DHT's very impressive revenue growth greatly exceeded the industry average of 2.2%. Since the same quarter one year prior, revenues leaped by 135.4%. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 148.5% when compared to the same quarter one year prior, rising from $11.46 million to $28.48 million.
- DHT's debt-to-equity ratio of 0.98 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.88 is very high and demonstrates very strong liquidity.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, DHT HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, DHT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full DHT Holdings Ratings Report.