Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified BBCN Bancorp as such a stock due to the following factors:
- BBCN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.5 million.
- BBCN has traded 199,442 shares today.
- BBCN is trading at 2.33 times the normal volume for the stock at this time of day.
- BBCN is trading at a new low 3.02% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 BBCN:
BBCN Bancorp, Inc. operates as the bank holding company for BBCN Bank that provides commercial banking services primarily to small- to medium-sized businesses and individuals in the United States. The stock currently has a dividend yield of 2.4%. BBCN has a PE ratio of 16. Currently there are 2 analysts that rate BBCN Bancorp a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for BBCN Bancorp has been 444,500 shares per day over the past 30 days. BBCN has a market cap of $1.5 billion and is part of the financial sector and banking industry. The stock has a beta of 1.15 and a short float of 3.9% with 5.92 days to cover. Shares are up 33.6% year-to-date as of the close of trading on Tuesday.
rates BBCN Bancorp as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- BBCN's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 4.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.65% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BBCN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BBCN BANCORP INC has improved earnings per share by 18.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BBCN BANCORP INC increased its bottom line by earning $1.12 versus $1.03 in the prior year. This year, the market expects an improvement in earnings ($1.18 versus $1.12).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 17.1% when compared to the same quarter one year prior, going from $21.42 million to $25.09 million.
- The gross profit margin for BBCN BANCORP INC is currently very high, coming in at 88.19%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 27.18% trails the industry average.
- You can view the full BBCN Bancorp Ratings Report.