Skip to main content

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

Western Asset Mortgage Capital

(

WMC

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Western Asset Mortgage Capital as such a stock due to the following factors:

  • WMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.3 million.
  • WMC traded 107,779 shares today in the pre-market hours as of 8:53 AM, representing 17.2% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in WMC with the Ticky from Trade-Ideas. See the FREE profile for WMC NOW at Trade-Ideas

More details on WMC:

Western Asset Mortgage Capital Corporation operates as a real estate investment trust (REIT) in the United States. It primarily engages in investing in, financing, and managing agency residential mortgage-backed securities. The stock currently has a dividend yield of 22.4%. Currently there are no analysts that rate Western Asset Mortgage Capital a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Western Asset Mortgage Capital has been 546,200 shares per day over the past 30 days. Western Asset has a market cap of $389.8 million and is part of the financial sector and real estate industry. The stock has a beta of 0.61 and a short float of 17.2% with 6.57 days to cover. Shares are down 18.6% year-to-date as of the close of trading on Wednesday.

TheStreet Recommends

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

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Western Asset Mortgage Capital as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • WESTERN ASSET MTG CAPITAL CP 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. For the next year, the market is expecting a contraction of 8.4% in earnings ($3.45 versus $3.76).
  • 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 Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 73.2% when compared to the same quarter one year ago, falling from $28.19 million to $7.54 million.
  • WMC, with its very weak revenue results, has greatly underperformed against the industry average of 9.6%. Since the same quarter one year prior, revenues plummeted by 57.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, WESTERN ASSET MTG CAPITAL CP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of WESTERN ASSET MTG CAPITAL CP has not done very well: it is down 20.72% 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.

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

null