Trade-Ideas LLC identified

Navigator Holdings

(

NVGS

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

  • NVGS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.2 million.
  • NVGS has traded 72,579 shares today.
  • NVGS is trading at 3.47 times the normal volume for the stock at this time of day.
  • NVGS is trading at a new low 4.04% 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 NVGS:

TheStreet Recommends

Navigator Holdings Ltd. owns and operates a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of liquefied petroleum gas, petrochemical gases, and ammonia for energy companies, industrial users, and commodity traders. NVGS has a PE ratio of 7. Currently there are 3 analysts that rate Navigator Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Navigator Holdings has been 307,800 shares per day over the past 30 days. Navigator has a market cap of $626.9 million and is part of the services sector and transportation industry. The stock has a beta of 1.40 and a short float of 3.4% with 1.98 days to cover. Shares are down 18.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Navigator Holdings as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Looking at the price performance of NVGS's shares over the past 12 months, there is not much good news to report: the stock is down 43.96%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, NAVIGATOR HOLDINGS LTD's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has decreased to $17.12 million or 35.82% when compared to the same quarter last year. Despite a decrease in cash flow NAVIGATOR HOLDINGS LTD is still fairing well by exceeding its industry average cash flow growth rate of -49.80%.
  • NAVIGATOR HOLDINGS LTD's earnings per share declined by 16.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NAVIGATOR HOLDINGS LTD increased its bottom line by earning $1.77 versus $1.52 in the prior year. For the next year, the market is expecting a contraction of 9.0% in earnings ($1.61 versus $1.77).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 16.0% when compared to the same quarter one year ago, dropping from $23.08 million to $19.39 million.

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