Trade-Ideas LLC identified

First BanCorp

(

FBP

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified First BanCorp as such a stock due to the following factors:

  • FBP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.3 million.
  • FBP has traded 163,613 shares today.
  • FBP is trading at 2.57 times the normal volume for the stock at this time of day.
  • FBP is trading at a new high 5.03% 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 FBP:

First BanCorp. operates as the bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to retail, commercial, and institutional clients. FBP has a PE ratio of 2. Currently there are 2 analysts that rate First BanCorp a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for First BanCorp has been 1.1 million shares per day over the past 30 days. First BanCorp has a market cap of $752.5 million and is part of the financial sector and banking industry. The stock has a beta of 1.88 and a short float of 4.8% with 1.91 days to cover. Shares are down 42.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates First BanCorp as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Commercial Banks industry and the overall market, FIRST BANCORP P R's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for FIRST BANCORP P R is rather high; currently it is at 66.74%. Regardless of FBP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FBP's net profit margin of 8.75% is significantly lower than the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Commercial Banks industry average. The net income has significantly decreased by 36.4% when compared to the same quarter one year ago, falling from $23.20 million to $14.76 million.
  • Net operating cash flow has decreased to $66.40 million or 23.45% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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