QTS Realty (QTS) Moving On Heavy Volume In The Pre-Market Hours - TheStreet

Trade-Ideas LLC identified

QTS Realty

(

QTS

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified QTS Realty as such a stock due to the following factors:

  • QTS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
  • QTS traded 114,551 shares today in the pre-market hours as of 9:13 AM, representing 40.3% of its average daily volume.

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More details on QTS:

QTS Realty Trust, Inc. focuses on the ownership, development, and operation of carrier-neutral data centers in the United States. The company was founded in 2013 and is headquartered in Overland Park, Kansas. The stock currently has a dividend yield of 3%. QTS has a PE ratio of 72. Currently there are 5 analysts that rate QTS Realty a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for QTS Realty has been 298,500 shares per day over the past 30 days. QTS has a market cap of $1.7 billion and is part of the financial sector and real estate industry. Shares are up 26.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates QTS Realty as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • QTS's very impressive revenue growth greatly exceeded the industry average of 6.1%. Since the same quarter one year prior, revenues leaped by 53.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 122.0% when compared to the same quarter one year prior, rising from $3.16 million to $7.01 million.
  • Powered by its strong earnings growth of 54.54% and other important driving factors, this stock has surged by 31.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • 36.02% is the gross profit margin for QTS REALTY TRUST INC which we consider to be strong. Regardless of QTS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, QTS's net profit margin of 7.88% is significantly lower than the industry average.
  • 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. In comparison to the other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, QTS REALTY TRUST INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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