Trade-Ideas LLC identified

Eclipse Resources

(

ECR

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

  • ECR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.9 million.
  • ECR has traded 129,654 shares today.
  • ECR is trading at 2.15 times the normal volume for the stock at this time of day.
  • ECR is trading at a new low 3.18% 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 ECR:

Eclipse Resources Corporation, an independent exploration and production company, acquires and develops oil and natural gas properties in the Appalachian Basin. The company owns interests in the Utica Shale and Marcellus Shale areas. Currently there are 5 analysts that rate Eclipse Resources a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Eclipse Resources has been 1.4 million shares per day over the past 30 days. Eclipse has a market cap of $752.6 million and is part of the basic materials sector and energy industry. Shares are down 55.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Eclipse Resources as a

sell

. The area that we feel has been the company's primary weakness has been its poor profit margins.

Highlights from the ratings report include:

  • 46.15% is the gross profit margin for ECLIPSE RESOURCES CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ECR's net profit margin of -56.37% significantly underperformed when compared to the industry average.
  • Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ECLIPSE RESOURCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • ECR'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 79.56%, 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.
  • ECLIPSE RESOURCES CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings (-$0.61 versus -$1.03).
  • 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 62.7% when compared to the same quarter one year prior, rising from -$112.65 million to -$41.97 million.

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