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Trade-Ideas LLC identified

Spark Energy

(

SPKE

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

  • SPKE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.1 million.
  • SPKE has traded 62,364 shares today.
  • SPKE is trading at 5.71 times the normal volume for the stock at this time of day.
  • SPKE is trading at a new high 5.14% 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 SPKE:

TheStreet Recommends

Spark Energy, Inc., through its subsidiaries, operates as an independent retail energy services company in the United States. It operates through two segments, Retail Natural Gas and Retail Electricity. The stock currently has a dividend yield of 5.2%. SPKE has a PE ratio of 3. Currently there are 2 analysts that rate Spark Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Spark Energy has been 160,600 shares per day over the past 30 days. Spark Energy has a market cap of $386.5 million and is part of the utilities sector and utilities industry. Shares are up 31.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Spark Energy as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.6%. Since the same quarter one year prior, revenues slightly increased by 8.6%. 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.
  • Compared to its closing price of one year ago, SPKE's share price has jumped by 93.05%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • SPARK ENERGY INC's earnings per share declined by 15.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SPARK ENERGY INC turned its bottom line around by earning $1.15 versus -$2.19 in the prior year. This year, the market expects an improvement in earnings ($1.97 versus $1.15).
  • The gross profit margin for SPARK ENERGY INC is rather low; currently it is at 22.04%. Regardless of SPKE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.77% trails the industry average.
  • Currently the debt-to-equity ratio of 1.66 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, SPKE maintains a poor quick ratio of 0.93, which illustrates the inability to avoid short-term cash problems.

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