Trade-Ideas LLC identified

Independence Realty

(

IRT

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

  • IRT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • IRT has traded 57,015 shares today.
  • IRT is trading at 4.72 times the normal volume for the stock at this time of day.
  • IRT is trading at a new high 4.13% 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 IRT:

Independence Realty Trust, Inc is an equity real estate investment trust launched by RAIT Financial Trust. It is managed by Independence Realty Advisors, LLC. The fund invests in the real estate markets of the United States. It makes investments in apartment properties to create its portfolio. The stock currently has a dividend yield of 8.1%. IRT has a PE ratio of 11. Currently there are 3 analysts that rate Independence Realty a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Independence Realty has been 338,300 shares per day over the past 30 days. Independence has a market cap of $421.4 million and is part of the financial sector and real estate industry. Shares are up 20.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Independence Realty as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The gross profit margin for INDEPENDENCE REALTY TRUST is rather low; currently it is at 21.53%. Regardless of IRT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, IRT's net profit margin of -0.19% significantly underperformed when compared to the industry average.
  • Net operating cash flow has decreased to $7.46 million or 12.30% when compared to the same quarter last year. Despite a decrease in cash flow of 12.30%, INDEPENDENCE REALTY TRUST is still significantly exceeding the industry average of -65.75%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, INDEPENDENCE REALTY TRUST's return on equity is below that of both the industry average and the S&P 500.
  • INDEPENDENCE REALTY TRUST 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, INDEPENDENCE REALTY TRUST increased its bottom line by earning $0.80 versus $0.19 in the prior year. For the next year, the market is expecting a contraction of 53.8% in earnings ($0.37 versus $0.80).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 67.8% when compared to the same quarter one year prior, rising from -$0.23 million to -$0.08 million.

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