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Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ocwen Financial as such a stock due to the following factors:
- OCN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $168.5 million.
- OCN has traded 261,813 shares today.
- OCN is down 4.1% today.
- OCN was up 11.3% yesterday.
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More details on OCN:
Ocwen Financial Corporation, through its subsidiaries, is engaged in the servicing and origination of mortgage loans in the United States and internationally. OCN has a PE ratio of 9.2. Currently there is 1 analyst that rates Ocwen Financial a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Ocwen Financial has been 3.0 million shares per day over the past 30 days. Ocwen Financial has a market cap of $2.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.66 and a short float of 10.3% with 1.54 days to cover. Shares are down 58.2% year-to-date as of the close of trading on Thursday.
rates Ocwen Financial as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity and increase in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- OCWEN FINANCIAL CORP has improved earnings per share by 6.7% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, OCWEN FINANCIAL CORP increased its bottom line by earning $2.07 versus $1.30 in the prior year. This year, the market expects an improvement in earnings ($2.22 versus $2.07).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, OCWEN FINANCIAL CORP's return on equity exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has exceeded that of the Thrifts & Mortgage Finance industry average, but is less than that of the S&P 500. The net income increased by 2.0% when compared to the same quarter one year prior, going from $65.66 million to $66.96 million.
- OCN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 65.37%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
- Net operating cash flow has significantly decreased to -$3.02 million or 100.63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Ocwen Financial Ratings Report.