Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Golar LNG as such a stock due to the following factors:
- GLNG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.4 million.
- GLNG has traded 54,316 shares today.
- GLNG is down 3.6% today.
- GLNG was up 6.4% yesterday.
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More details on GLNG:
Golar LNG Limited, a midstream liquefied natural gas (LNG) company, engages in the transportation, regasification, liquefaction, and trading of LNG. The company operates in three segments: Vessel Operations, LNG Trading, and FLNG. The stock currently has a dividend yield of 1.3%. Currently there are 6 analysts that rate Golar LNG a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Golar LNG has been 1.8 million shares per day over the past 30 days. Golar LNG has a market cap of $1.5 billion and is part of the services sector and transportation industry. The stock has a beta of 0.82 and a short float of 15.3% with 6.99 days to cover. Shares are up 6.9% year-to-date as of the close of trading on Monday.
rates Golar LNG as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 465.4% when compared to the same quarter one year ago, falling from $21.92 million to -$80.09 million.
- The debt-to-equity ratio of 1.08 is relatively high when compared with the industry average, suggesting a need for better debt level management.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GOLAR LNG LTD's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 68.80%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 473.91% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- GOLAR LNG LTD 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 reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GOLAR LNG LTD reported poor results of -$2.13 versus -$0.50 in the prior year. This year, the market expects an improvement in earnings (-$1.65 versus -$2.13).
- You can view the full Golar LNG Ratings Report.