Trade-Ideas: Liberty Global (LBTYA) Is Today's Strong On High Relative Volume Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Liberty Global as such a stock due to the following factors:
- LBTYA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $186.5 million.
- LBTYA has traded 565,846 shares today.
- LBTYA is trading at 8.01 times the normal volume for the stock at this time of day.
- LBTYA is trading at a new high 3.02% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 LBTYA:
Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, and mobile services in Europe, Chile, Puerto Rico, and internationally. Currently there are 9 analysts that rate Liberty Global a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Liberty Global has been 1.9 million shares per day over the past 30 days. Liberty Global has a market cap of $14.0 billion and is part of the services sector and media industry. The stock has a beta of 1.87 and a short float of 2.6% with 2.43 days to cover. Shares are up 12.3% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Liberty Global as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 3.3%. 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.
- The gross profit margin for LIBERTY GLOBAL PLC is rather high; currently it is at 62.46%. 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 -11.34% is in-line with the industry average.
- Net operating cash flow has slightly increased to $1,542.70 million or 5.28% when compared to the same quarter last year. Despite an increase in cash flow, LIBERTY GLOBAL PLC's average is still marginally south of the industry average growth rate of 15.01%.
- 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 Media industry. The net income has significantly decreased by 331.8% when compared to the same quarter one year ago, falling from -$121.20 million to -$523.40 million.
- Although LBTYA's debt-to-equity ratio of 3.14 is very high, it is currently less than that of the industry average. Along with this, the company manages to maintain a quick ratio of 0.29, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full Liberty Global Ratings Report.
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