Strong On High Volume: Navios Maritime Partners (NMM) - TheStreet

Trade-Ideas LLC identified

Navios Maritime Partners

(

NMM

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

  • NMM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.2 million.
  • NMM has traded 226,325 shares today.
  • NMM is trading at 4.30 times the normal volume for the stock at this time of day.
  • NMM is trading at a new high 4.13% 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 NMM:

Navios Maritime Partners L.P. owns and operates dry cargo vessels in Europe, Asia, North America, and Australia. The stock currently has a dividend yield of 21.3%. NMM has a PE ratio of 5. Currently there are 2 analysts that rate Navios Maritime Partners a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for Navios Maritime Partners has been 676,400 shares per day over the past 30 days. Navios Maritime has a market cap of $331.5 million and is part of the services sector and transportation industry. The stock has a beta of 1.18 and a short float of 6% with 3.28 days to cover. Shares are down 64.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Navios Maritime Partners as a

hold

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

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 15.7%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • NMM's debt-to-equity ratio of 0.81 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.89 is weak.
  • 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. When compared to other companies in the Marine industry and the overall market, NAVIOS MARITIME PARTNERS LP's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $28.62 million or 11.01% 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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