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Trade-Ideas LLC identified

Republic Airways Holdings

(

RJET

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Republic Airways Holdings as such a stock due to the following factors:

  • RJET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.6 million.
  • RJET has traded 369,359 shares today.
  • RJET is up 3.4% today.
  • RJET was down 5.4% yesterday.

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More details on RJET:

Republic Airways Holdings Inc., through its subsidiaries, provides scheduled passenger services. The company offers scheduled passenger service on approximately 1,229 flights daily to approximately 101 cities in the U.S. and Canada. RJET has a PE ratio of 8. Currently there are 2 analysts that rate Republic Airways Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Recommends

The average volume for Republic Airways Holdings has been 3.8 million shares per day over the past 30 days. Republic Airways has a market cap of $319.6 million and is part of the services sector and transportation industry. The stock has a beta of 1.43 and a short float of 10% with 0.91 days to cover. Shares are down 59.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Republic Airways Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 39.19% is the gross profit margin for REPUBLIC AIRWAYS HLDGS INC which we consider to be strong. Regardless of RJET's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RJET's net profit margin of 1.27% is significantly lower than the industry average.
  • The debt-to-equity ratio is very high at 3.54 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.49, which clearly demonstrates the inability to cover short-term cash needs.
  • 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. In comparison to the other companies in the Airlines industry and the overall market, REPUBLIC AIRWAYS HLDGS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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