Nordic American Tankers (NAT) Weak On High Volume Today
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Nordic American Tankers as such a stock due to the following factors:
- NAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.2 million.
- NAT has traded 395,198 shares today.
- NAT is trading at 2.79 times the normal volume for the stock at this time of day.
- NAT is trading at a new low 3.02% 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 NAT:
Nordic American Tankers Limited, a tanker company, engages in acquiring and chartering double-hull tankers in Bermuda and internationally. It operates a fleet of 26 Suezmax crude oil tankers. The company was founded in 1995 and is based in Hamilton, Bermuda. The stock currently has a dividend yield of 11.2%. NAT has a PE ratio of 11. Currently there is 1 analyst that rates Nordic American Tankers a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Nordic American Tankers has been 1.4 million shares per day over the past 30 days. Nordic American Tankers has a market cap of $1.3 billion and is part of the services sector and transportation industry. The stock has a beta of 0.90 and a short float of 16.2% with 8.12 days to cover. Shares are down 6.2% year-to-date as of the close of trading on Friday.
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Analysis:
rates Nordic American Tankers as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 32.1%. Since the same quarter one year prior, revenues rose by 20.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.59, which clearly demonstrates the ability to cover short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, NORDIC AMERICAN TANKERS LTD's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The gross profit margin for NORDIC AMERICAN TANKERS LTD is rather high; currently it is at 51.99%. It has increased significantly from the same period last year. Along with this, the net profit margin of 26.32% significantly outperformed against the industry average.
- Net operating cash flow has increased to $35.19 million or 26.39% when compared to the same quarter last year. In addition, NORDIC AMERICAN TANKERS LTD has also vastly surpassed the industry average cash flow growth rate of -40.87%.
- You can view the full Nordic American Tankers Ratings Report.
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