Trade-Ideas LLC identified

Och-Ziff Capital Management Group

(

OZM

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Och-Ziff Capital Management Group as such a stock due to the following factors:

  • OZM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • OZM has traded 451,215 shares today.
  • OZM is trading at 10.66 times the normal volume for the stock at this time of day.
  • OZM is trading at a new high 4.02% 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 OZM:

Och-Ziff Capital Management Group LLC is a publicly owned hedge fund sponsor. The firm provides investment advisory services for its clients. It invests in equity markets across the world. The firm makes its investments in alternative markets across the world. The stock currently has a dividend yield of 13.5%. OZM has a PE ratio of 1. Currently there are 4 analysts that rate Och-Ziff Capital Management Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Och-Ziff Capital Management Group has been 611,300 shares per day over the past 30 days. Och-Ziff Capital Management Group has a market cap of $1.4 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.88 and a short float of 1.4% with 1.96 days to cover. Shares are down 36% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Och-Ziff Capital Management Group as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 22.4%. 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.
  • The gross profit margin for OCH-ZIFF CAPITAL MGMT LLC is rather high; currently it is at 50.60%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, OZM's net profit margin of 1.48% significantly trails the industry average.
  • Net operating cash flow has decreased to $19.00 million or 49.38% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • OCH-ZIFF CAPITAL MGMT LLC's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, OCH-ZIFF CAPITAL MGMT LLC reported lower earnings of $0.75 versus $1.50 in the prior year. For the next year, the market is expecting a contraction of 14.9% in earnings ($0.64 versus $0.75).
  • 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 Capital Markets industry. The net income has significantly decreased by 55.6% when compared to the same quarter one year ago, falling from $10.72 million to $4.76 million.

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