Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Montpelier RE Holdings

(

MRH

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Montpelier RE Holdings as such a stock due to the following factors:

  • MRH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.1 million.
  • MRH traded 26,277 shares today in the pre-market hours as of 9:05 AM, representing 10.1% of its average daily volume.

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More details on MRH:

Montpelier Re Holdings Ltd., through its subsidiaries, provides insurance and reinsurance solutions worldwide. It operates in three segments: Montpelier Bermuda, Montpelier at Lloyd's, and Collateralized Reinsurance. The stock currently has a dividend yield of 2.1%. MRH has a PE ratio of 8.3. Currently there are no analysts that rate Montpelier RE Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Montpelier RE Holdings has been 273,400 shares per day over the past 30 days. Montpelier RE has a market cap of $1.6 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.86 and a short float of 6.9% with 9.29 days to cover. Shares are up 4.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Montpelier RE Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, MRH's share price has jumped by 28.25%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MRH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Although MRH's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average.
  • Net operating cash flow has significantly increased by 991.89% to $33.00 million when compared to the same quarter last year. In addition, MONTPELIER RE HOLDINGS has also vastly surpassed the industry average cash flow growth rate of 5.97%.
  • The gross profit margin for MONTPELIER RE HOLDINGS is rather high; currently it is at 58.57%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MRH's net profit margin of 35.03% significantly outperformed against the industry.
  • 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 Insurance industry and the overall market on the basis of return on equity, MONTPELIER RE HOLDINGS has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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