Range Resources (RRC) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Range Resources as such a stock due to the following factors:
- RRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $236.9 million.
- RRC has traded 722,662 shares today.
- RRC is trading at 2.74 times the normal volume for the stock at this time of day.
- RRC is trading at a new high 3.00% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 RRC:
Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company. It engages in the exploration, development, and acquisition of natural gas and oil properties. The stock currently has a dividend yield of 0.2%. RRC has a PE ratio of 12. Currently there are 9 analysts that rate Range Resources a buy, 1 analyst rates it a sell, and 12 rate it a hold.
The average volume for Range Resources has been 5.5 million shares per day over the past 30 days. Range has a market cap of $6.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.99 and a short float of 13% with 3.30 days to cover. Shares are up 59.6% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Range Resources as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.
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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 431.3% when compared to the same quarter one year ago, falling from $27.68 million to -$91.71 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, RANGE RESOURCES CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for RANGE RESOURCES CORP is currently lower than what is desirable, coming in at 29.12%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -27.68% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to $87.42 million or 58.49% 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.
- RRC's debt-to-equity ratio of 0.97 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.31 is very low and demonstrates very weak liquidity.
- You can view the full Range Resources Ratings Report.
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