Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Diamond Resorts International as such a stock due to the following factors:
- DRII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.1 million.
- DRII has traded 1.3 million shares today.
- DRII is trading at 24.34 times the normal volume for the stock at this time of day.
- DRII is trading at a new high 23.02% 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 DRII:
Diamond Resorts International, Inc. operates in the hospitality and vacation ownership industry in the United States, Hawaii, Canada, Mexico, the Caribbean, Central America, South America, Europe, Asia, Australia, New Zealand, and Africa. DRII has a PE ratio of 12. Currently there are 3 analysts that rate Diamond Resorts International a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Diamond Resorts International has been 1.0 million shares per day over the past 30 days. Diamond Resorts International has a market cap of $1.4 billion and is part of the services sector and leisure industry. The stock has a beta of 1.01 and a short float of 48.7% with 14.38 days to cover. Shares are down 25.1% year-to-date as of the close of trading on Wednesday.
rates Diamond Resorts International as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- DIAMOND RESORTS INTL has improved earnings per share by 44.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, DIAMOND RESORTS INTL turned its bottom line around by earning $0.76 versus -$0.04 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $0.76).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Hotels, Restaurants & Leisure industry average. The net income increased by 40.3% when compared to the same quarter one year prior, rising from $26.30 million to $36.90 million.
- DRII's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 41.61%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- The debt-to-equity ratio is very high at 3.35 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- You can view the full Diamond Resorts International Ratings Report.