Today's Weak On High Volume Stock: Finish Line (FINL)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Finish Line as such a stock due to the following factors:
- FINL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.7 million.
- FINL has traded 54,859 shares today.
- FINL is trading at 2.04 times the normal volume for the stock at this time of day.
- FINL is trading at a new low 3.16% 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 FINL:
The Finish Line, Inc., together with its subsidiaries, operates as a specialty retailer of athletic shoes, apparel, and accessories in the United States. It operates in two divisions, the Finish Line and JackRabbit. The stock currently has a dividend yield of 2.1%. FINL has a PE ratio of 4. Currently there are 10 analysts that rate Finish Line a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Finish Line has been 1.0 million shares per day over the past 30 days. Finish Line has a market cap of $805.7 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.26 and a short float of 9% with 3.47 days to cover. Shares are up 6.6% year-to-date as of the close of trading on Monday.
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Analysis:
rates Finish Line as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 5.2%. 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.
- 35.98% is the gross profit margin for FINISH LINE INC which we consider to be strong. 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 0.69% trails the industry average.
- FINL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Despite the fact that FINL's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.
- FINISH LINE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, FINISH LINE INC reported lower earnings of $0.47 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($1.54 versus $0.47).
- 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 Specialty Retail industry. The net income has significantly decreased by 90.1% when compared to the same quarter one year ago, falling from $40.82 million to $4.04 million.
- You can view the full Finish Line Ratings Report.
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