Trade-Ideas LLC identified

Greenhill

(

GHL

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

  • GHL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.7 million.
  • GHL has traded 308,511 shares today.
  • GHL is trading at 2.86 times the normal volume for the stock at this time of day.
  • GHL 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 GHL:

Greenhill & Co., Inc., together with its subsidiaries, operates as an independent investment bank for corporations, partnerships, institutions, and governments worldwide. The stock currently has a dividend yield of 9.8%. GHL has a PE ratio of 26. Currently there are no analysts that rate Greenhill a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Greenhill has been 440,000 shares per day over the past 30 days. Greenhill has a market cap of $545.0 million and is part of the financial sector and financial services industry. The stock has a beta of 1.03 and a short float of 9% with 12.00 days to cover. Shares are down 42.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Greenhill as a

hold

. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 24.4%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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.
  • GREENHILL & CO INC's earnings per share declined by 44.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GREENHILL & CO INC reported lower earnings of $0.82 versus $1.45 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $0.82).
  • The change in net income from the same quarter one year ago has exceeded that of the Capital Markets industry average, but is less than that of the S&P 500. The net income has significantly decreased by 42.7% when compared to the same quarter one year ago, falling from $7.60 million to $4.36 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Capital Markets industry and the overall market, GREENHILL & CO INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for GREENHILL & CO INC is currently extremely low, coming in at 12.62%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.51% significantly trails the industry average.

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