Trade-Ideas LLC identified

Gray Television

(

GTN

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

  • GTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.5 million.
  • GTN has traded 113,076 shares today.
  • GTN is trading at 4.80 times the normal volume for the stock at this time of day.
  • GTN is trading at a new low 3.06% 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 GTN:

Gray Television, Inc., a television broadcast company, owns and/or operates television stations and digital assets in the United States. GTN has a PE ratio of 13. Currently there are 3 analysts that rate Gray Television a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Gray Television has been 731,300 shares per day over the past 30 days. Gray Television has a market cap of $811.0 million and is part of the services sector and media industry. The stock has a beta of 3.07 and a short float of 4.7% with 3.30 days to cover. Shares are down 27.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Gray Television as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, notable return on equity, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • GTN's revenue growth has slightly outpaced the industry average of 7.9%. Since the same quarter one year prior, revenues rose by 14.7%. 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 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 Media industry and the overall market on the basis of return on equity, GRAY TELEVISION INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Compared to where it was trading a year ago, GTN's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 38.57% is the gross profit margin for GRAY TELEVISION INC which we consider to be strong. Regardless of GTN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.37% trails the industry average.

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