Trade-Ideas LLC identified

Och-Ziff Capital Management Group

(

OZM

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Och-Ziff Capital Management Group as such a stock due to the following factors:

  • OZM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.3 million.
  • OZM has traded 759,301 shares today.
  • OZM is down 3.2% today.
  • OZM was up 15.6% yesterday.

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More details on OZM:

Och-Ziff Capital Management Group LLC is a publicly owned hedge fund sponsor. The firm provides investment advisory services for its clients. It invests in equity markets across the world. The firm makes its investments in alternative markets across the world. The stock currently has a dividend yield of 14.1%. OZM has a PE ratio of 8. Currently there are 4 analysts that rate Och-Ziff Capital Management Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Och-Ziff Capital Management Group has been 1.2 million shares per day over the past 30 days. Och-Ziff Capital Management Group has a market cap of $1.1 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.20 and a short float of 0.9% with 0.64 days to cover. Shares are down 39% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Och-Ziff Capital Management Group as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 6.3%. 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.
  • Net operating cash flow has increased to $243.93 million or 41.69% when compared to the same quarter last year. Despite an increase in cash flow of 41.69%, OCH-ZIFF CAPITAL MGMT LLC is still growing at a significantly lower rate than the industry average of 271.57%.
  • The change in net income from the same quarter one year ago has exceeded that of the Capital Markets industry average, but is less than that of the S&P 500. The net income has decreased by 24.9% when compared to the same quarter one year ago, dropping from $23.20 million to $17.42 million.
  • OCH-ZIFF CAPITAL MGMT LLC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, OCH-ZIFF CAPITAL MGMT LLC reported lower earnings of $0.75 versus $1.50 in the prior year. For the next year, the market is expecting a contraction of 24.0% in earnings ($0.57 versus $0.75).
  • The gross profit margin for OCH-ZIFF CAPITAL MGMT LLC is currently lower than what is desirable, coming in at 33.82%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 5.34% significantly trails the industry average.

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