Trade-Ideas: Republic Airways Holdings (RJET) Is Today's Strong On High Relative Volume Stock - TheStreet

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 or Stephanie Link.

Trade-Ideas LLC identified

Republic Airways Holdings

(

RJET

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Republic Airways Holdings as such a stock due to the following factors:

  • RJET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • RJET has traded 123,455 shares today.
  • RJET is trading at 2.48 times the normal volume for the stock at this time of day.
  • RJET is trading at a new high 4.01% 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 RJET:

Republic Airways Holdings Inc., through its subsidiaries, provides scheduled passenger services. It offers scheduled passenger service on approximately 1,390 flights daily to approximately 118 cities in the U.S. RJET has a PE ratio of 10.1. Currently there is 1 analyst that rates Republic Airways Holdings a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Republic Airways Holdings has been 513,400 shares per day over the past 30 days. Republic Airways has a market cap of $671.1 million and is part of the services sector and transportation industry. The stock has a beta of 2.19 and a short float of 2.8% with 3.12 days to cover. Shares are up 25.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Republic Airways Holdings as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 3.87 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, RJET has a quick ratio of 0.61, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has declined marginally to $105.90 million or 7.83% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, REPUBLIC AIRWAYS HLDGS INC has marginally lower results.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Airlines industry and the overall market, REPUBLIC AIRWAYS HLDGS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • 40.32% is the gross profit margin for REPUBLIC AIRWAYS HLDGS 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 5.29% trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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