Dunkin' Brands Group (DNKN) Roof Leaking Today
Trade-Ideas LLC identified
(
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Dunkin' Brands Group as such a stock due to the following factors:
- DNKN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.8 million.
- DNKN has traded 137,437 shares today.
- DNKN is trading at 1.96 times the normal volume for the stock at this time of day.
- DNKN crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on DNKN:
Dunkin' Brands Group, Inc., together with its subsidiaries, develops, franchises, and licenses quick service restaurants under the Dunkin' Donuts and Baskin-Robbins brands worldwide. The stock currently has a dividend yield of 2.6%. DNKN has a PE ratio of 22. Currently there are 4 analysts that rate Dunkin' Brands Group a buy, 1 analyst rates it a sell, and 12 rate it a hold.
The average volume for Dunkin' Brands Group has been 1.4 million shares per day over the past 30 days. Dunkin' Brands Group has a market cap of $4.2 billion and is part of the services sector and leisure industry. The stock has a beta of 0.07 and a short float of 14.8% with 7.49 days to cover. Shares are up 6.5% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Dunkin' Brands Group as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth 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:
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Hotels, Restaurants & Leisure industry average. The net income increased by 45.0% when compared to the same quarter one year prior, rising from $25.63 million to $37.15 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 2.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- DUNKIN' BRANDS GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DUNKIN' BRANDS GROUP INC reported lower earnings of $1.07 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($2.21 versus $1.07).
- The gross profit margin for DUNKIN' BRANDS GROUP INC is currently very high, coming in at 80.54%. Regardless of DNKN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DNKN's net profit margin of 19.57% compares favorably to the industry average.
- DNKN has underperformed the S&P 500 Index, declining 10.63% from its price level of one year ago. 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 Dunkin' Brands Group Ratings Report.
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