Hecla Mining (HL) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Hecla Mining as such a stock due to the following factors:
- HL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.7 million.
- HL has traded 1.3 million shares today.
- HL is trading at 2.03 times the normal volume for the stock at this time of day.
- HL is trading at a new high 4.09% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 HL:
Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, produces, and markets precious and base metal deposits worldwide. The stock currently has a dividend yield of 0.2%. HL has a PE ratio of 2. Currently there are no analysts that rate Hecla Mining a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for Hecla Mining has been 9.1 million shares per day over the past 30 days. Hecla has a market cap of $1.5 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.57 and a short float of 10.2% with 2.79 days to cover. Shares are up 120.1% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Hecla Mining as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 42.0%. Since the same quarter one year prior, revenues rose by 10.0%. 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 current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, HL has a quick ratio of 1.50, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has decreased to $18.75 million or 12.47% when compared to the same quarter last year. Despite a decrease in cash flow HECLA MINING CO is still fairing well by exceeding its industry average cash flow growth rate of -40.05%.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, HECLA MINING CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full Hecla Mining Ratings Report.
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