Vince (VNCE) Is Weak On High Volume Today
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 weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vince as such a stock due to the following factors:
- VNCE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.2 million.
- VNCE has traded 156,809 shares today.
- VNCE is trading at 11.10 times the normal volume for the stock at this time of day.
- VNCE is trading at a new low 9.02% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VNCE with the Ticky from Trade-Ideas. See the FREE profile for VNCE NOW at Trade-Ideas
More details on VNCE:
Vince Holding Corp. is engaged in the design, merchandise, wholesale, and retail of contemporary fashion brands products. It operates through two segments, Wholesale and Direct-To-Consumer. VNCE has a PE ratio of 22.5. Currently there are 6 analysts that rate Vince a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Vince has been 354,000 shares per day over the past 30 days. Vince has a market cap of $761.8 million and is part of the consumer goods sector and consumer non-durables industry. Shares are down 18.2% year-to-date as of the close of trading on Wednesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Vince as a
. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk.
Highlights from the ratings report include:
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, VNCE has underperformed the S&P 500 Index, declining 23.37% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- The debt-to-equity ratio is very high at 2.02 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, VNCE maintains a poor quick ratio of 0.91, which illustrates the inability to avoid short-term cash problems.
- VINCE HOLDING CORP's earnings per share declined by 23.9% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.94 versus $0.69).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 664.3% when compared to the same quarter one year prior, rising from -$2.36 million to $13.31 million.
- The gross profit margin for VINCE HOLDING CORP is rather high; currently it is at 50.57%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.92% is above that of the industry average.
- You can view the full Vince Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
null
