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Trade-Ideas LLC identified

Global Eagle Entertainment

(

ENT

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

  • ENT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
  • ENT has traded 61,669 shares today.
  • ENT is trading at 11.02 times the normal volume for the stock at this time of day.
  • ENT is trading at a new low 9.37% 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 ENT:

Global Eagle Entertainment Inc. provides content, connectivity, and digital media solutions for airlines worldwide. The company operates through two segments, Connectivity and Content. The Connectivity segment offers Wi-Fi Internet connectivity through Ku-band satellite transmissions. Currently there are 4 analysts that rate Global Eagle Entertainment a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Global Eagle Entertainment has been 297,800 shares per day over the past 30 days. Global Eagle Entertainment has a market cap of $1.0 billion and is part of the services sector and media industry. The stock has a beta of 1.56 and a short float of 11.7% with 8.28 days to cover. Shares are down 1.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Global Eagle Entertainment as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • GLOBAL EAGLE ENTERTAINMENT reported significant earnings per share improvement 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, GLOBAL EAGLE ENTERTAINMENT continued to lose money by earning -$1.07 versus -$2.14 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus -$1.07).
  • Net operating cash flow has significantly increased by 182.64% to $8.30 million when compared to the same quarter last year. In addition, GLOBAL EAGLE ENTERTAINMENT has also vastly surpassed the industry average cash flow growth rate of 2.01%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, GLOBAL EAGLE ENTERTAINMENT's return on equity significantly trails that of both the industry average and the S&P 500.

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