Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Walter Investment Management as such a stock due to the following factors:
- WAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.9 million.
- WAC has traded 53,506 shares today.
- WAC is trading at 4.68 times the normal volume for the stock at this time of day.
- WAC is trading at a new high 16.03% 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 WAC:
Walter Investment Management Corp., a diversified mortgage banking firm, focuses primarily on the servicing and origination of residential loans in the United States. Currently there are no analysts that rate Walter Investment Management a buy, 4 analysts rate it a sell, and 3 rate it a hold.
The average volume for Walter Investment Management has been 226,500 shares per day over the past 30 days. Walter Investment Management has a market cap of $429.8 million and is part of the financial sector and real estate industry. The stock has a beta of 0.36 and a short float of 44.3% with 16.33 days to cover. Shares are down 30.1% year-to-date as of the close of trading on Friday.
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rates Walter Investment Management as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Thrifts & Mortgage Finance industry average, but is greater than that of the S&P 500. The net income has decreased by 8.7% when compared to the same quarter one year ago, dropping from -$70.80 million to -$76.93 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, WALTER INVESTMENT MGMT CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Looking at the price performance of WAC's shares over the past 12 months, there is not much good news to report: the stock is down 35.55%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- WALTER INVESTMENT MGMT CORP's earnings per share declined by 8.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, WALTER INVESTMENT MGMT CORP swung to a loss, reporting -$2.94 versus $6.64 in the prior year. This year, the market expects an improvement in earnings ($2.45 versus -$2.94).
- WAC, with its decline in revenue, underperformed when compared the industry average of 15.4%. Since the same quarter one year prior, revenues fell by 43.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Walter Investment Management Ratings Report.