Trade-Ideas LLC identified

Investment Technology Group

(

ITG

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

  • ITG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.3 million.
  • ITG has traded 74,327 shares today.
  • ITG is trading at 3.18 times the normal volume for the stock at this time of day.
  • ITG is trading at a new low 3.20% 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 ITG:

TheStreet Recommends

Investment Technology Group, Inc. operates as an independent execution and research broker in the United States, Canada, Europe, and the Asia Pacific regions. The stock currently has a dividend yield of 1.7%. ITG has a PE ratio of 19. Currently there is 1 analyst that rates Investment Technology Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Investment Technology Group has been 449,700 shares per day over the past 30 days. Investment Technology Group has a market cap of $563.8 million and is part of the financial sector and financial services industry. The stock has a beta of 0.19 and a short float of 2.2% with 1.08 days to cover. Shares are down 15.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Investment Technology Group as a

buy

. Among the primary strengths of the company is its revenue growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 1.5%. 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.
  • INVESTMENT TECHNOLOGY GP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INVESTMENT TECHNOLOGY GP INC increased its bottom line by earning $1.40 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $1.40).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 179.0% when compared to the same quarter one year ago, falling from $12.93 million to -$10.21 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Capital Markets industry and the overall market, INVESTMENT TECHNOLOGY GP INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for INVESTMENT TECHNOLOGY GP INC is rather low; currently it is at 17.99%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.26% is significantly below that of the industry average.

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