Trade-Ideas LLC identified
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified People's United Financial as such a stock due to the following factors:
- PBCT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.6 million.
- PBCT has traded 1.2 million shares today.
- PBCT is trading at 1.52 times the normal volume for the stock at this time of day.
- PBCT crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on PBCT:
People's United Financial, Inc. operates as the bank holding company for People's United Bank, National Association that provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers. The stock currently has a dividend yield of 4.2%. PBCT has a PE ratio of 18. Currently there are no analysts that rate People's United Financial a buy, 4 analysts rate it a sell, and 5 rate it a hold.
The average volume for People's United Financial has been 4.0 million shares per day over the past 30 days. People's United Financial has a market cap of $5.0 billion and is part of the financial sector and banking industry. The stock has a beta of 0.79 and a short float of 14.5% with 10.08 days to cover. Shares are unchanged year-to-date as of the close of trading on Tuesday.
rates People's United Financial as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- PBCT's revenue growth has slightly outpaced the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- PEOPLE'S UNITED FINL INC has improved earnings per share by 5.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, PEOPLE'S UNITED FINL INC increased its bottom line by earning $0.86 versus $0.85 in the prior year. This year, the market expects an improvement in earnings ($0.90 versus $0.86).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 6.3% when compared to the same quarter one year prior, going from $59.20 million to $62.90 million.
- The gross profit margin for PEOPLE'S UNITED FINL INC is currently very high, coming in at 86.21%. Regardless of PBCT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PBCT's net profit margin of 17.91% compares favorably to the industry average.
- After a year of stock price fluctuations, the net result is that PBCT's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full People's United Financial Ratings Report.