Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Renewable Energy Group as such a stock due to the following factors:
- REGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
- REGI has traded 104,282 shares today.
- REGI is trading at 9.62 times the normal volume for the stock at this time of day.
- REGI is trading at a new high 6.02% 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 REGI:
Renewable Energy Group, Inc. produces and sells advanced biofuels and renewable chemicals in the United States. The company operates through two segments, Biodiesel and Services. REGI has a PE ratio of 8.2. Currently there are 2 analysts that rate Renewable Energy Group a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Renewable Energy Group has been 370,700 shares per day over the past 30 days. Renewable Energy Group has a market cap of $386.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.35 and a short float of 12.6% with 14.80 days to cover. Shares are down 5.9% year-to-date as of the close of trading on Tuesday.
rates Renewable Energy Group as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, REGI has a quick ratio of 1.97, which demonstrates the ability of the company to cover short-term liquidity needs.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.7%. Since the same quarter one year prior, revenues fell by 16.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has decreased to $47.18 million or 35.13% 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.
- 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, RENEWABLE ENERGY GROUP INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Renewable Energy Group Ratings Report.