Trade-Ideas LLC identified

Investors Real Estate

(

IRET

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Investors Real Estate as such a stock due to the following factors:

  • IRET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.2 million.
  • IRET has traded 318,067 shares today.
  • IRET is trading at 18.94 times the normal volume for the stock at this time of day.
  • IRET is trading at a new low 3.09% 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 IRET:

TheStreet Recommends

Investors Real Estate Trust is a real estate investment trust. The trust invests in real estate markets of United States. It is primarily engaged in investment and operation of the the real estate assets. The stock currently has a dividend yield of 6.9%. IRET has a PE ratio of 54. Currently there are 3 analysts that rate Investors Real Estate a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Investors Real Estate has been 609,900 shares per day over the past 30 days. Investors Real Estate has a market cap of $918.2 million and is part of the financial sector and real estate industry. The stock has a beta of 0.39 and a short float of 5% with 8.81 days to cover. Shares are down 8.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Investors Real Estate as a

hold

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

Highlights from the ratings report include:

  • INVESTORS REAL ESTATE TRUST reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, INVESTORS REAL ESTATE TRUST turned its bottom line around by earning $0.11 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.14 versus $0.11).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 3106.6% when compared to the same quarter one year prior, rising from -$0.15 million to $4.54 million.
  • Net operating cash flow has slightly increased to $24.78 million or 5.97% when compared to the same quarter last year. Despite an increase in cash flow, INVESTORS REAL ESTATE TRUST's average is still marginally south of the industry average growth rate of 9.39%.
  • The gross profit margin for INVESTORS REAL ESTATE TRUST is currently lower than what is desirable, coming in at 34.26%. Regardless of IRET's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, IRET's net profit margin of 8.81% is significantly lower than the industry average.
  • IRET has underperformed the S&P 500 Index, declining 9.17% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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