Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Pattern Energy Group as such a stock due to the following factors:
- PEGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.8 million.
- PEGI has traded 78,362 shares today.
- PEGI is trading at 3.90 times the normal volume for the stock at this time of day.
- PEGI is trading at a new low 3.09% 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 PEGI:
Pattern Energy Group Inc., an independent power company, owns and operates power projects in the United States, Canada, and Chile. As of September 3, 2015, the company owned interests in 16 wind power projects with the capacity of 2,282 megawatts. The stock currently has a dividend yield of 9.3%. Currently there are 9 analysts that rate Pattern Energy Group a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Pattern Energy Group has been 1.1 million shares per day over the past 30 days. Pattern Energy Group has a market cap of $1.2 billion and is part of the utilities sector and utilities industry. Shares are down 22.6% year-to-date as of the close of trading on Friday.
rates Pattern Energy Group as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- 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 Independent Power Producers & Energy Traders industry. The net income has significantly decreased by 307.9% when compared to the same quarter one year ago, falling from -$7.21 million to -$29.41 million.
- The debt-to-equity ratio is very high at 2.17 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.27, which clearly demonstrates the inability to cover short-term cash needs.
- 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. Compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market, PATTERN ENERGY GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $34.68 million or 13.68% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 42.68%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 207.69% compared to 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.
- You can view the full Pattern Energy Group Ratings Report.