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Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Greenhill as such a stock due to the following factors:
- GHL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.8 million.
- GHL has traded 119,992 shares today.
- GHL traded in a range 413.4% of the normal price range with a price range of $4.01.
- GHL traded above its daily resistance level (quality: 62 days, meaning that the stock is crossing a resistance level set by the last 62 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on GHL:
Greenhill & Co., Inc., together with its subsidiaries, operates as an independent investment bank for corporations, partnerships, institutions, and governments worldwide. The company provides financial advice on mergers, acquisitions, restructurings, financings, and capital raising. The stock currently has a dividend yield of 4%. GHL has a PE ratio of 41.1. Currently there is 1 analyst that rates Greenhill a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Greenhill has been 480,600 shares per day over the past 30 days. Greenhill has a market cap of $1.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 2.47 and a short float of 15.3% with 9.17 days to cover. Shares are down 21.7% year-to-date as of the close of trading on Friday.
rates Greenhill as a
. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and premium valuation.
Highlights from the ratings report include:
- Net operating cash flow has increased to $22.38 million or 38.29% when compared to the same quarter last year. In addition, GREENHILL & CO INC has also vastly surpassed the industry average cash flow growth rate of -97.00%.
- The revenue fell significantly faster than the industry average of 0.5%. Since the same quarter one year prior, revenues fell by 45.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- GREENHILL & CO 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GREENHILL & CO INC increased its bottom line by earning $1.56 versus $1.38 in the prior year. For the next year, the market is expecting a contraction of 7.0% in earnings ($1.45 versus $1.56).
- 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 Capital Markets industry. The net income has significantly decreased by 98.3% when compared to the same quarter one year ago, falling from $13.62 million to $0.24 million.
- The share price of GREENHILL & CO INC has not done very well: it is down 7.23% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full Greenhill Ratings Report.