Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Sothebys as such a stock due to the following factors:
- BID has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.4 million.
- BID has traded 456,271 shares today.
- BID traded in a range 210.1% of the normal price range with a price range of $1.76.
- BID traded above its daily resistance level (quality: 105 days, meaning that the stock is crossing a resistance level set by the last 105 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on BID:
Sotheby's operates as an auctioneer of authenticated fine art, decorative art, jewelry, wine, and collectibles in the United States, the United Kingdom, China, France, Switzerland, and internationally. The company operates through two segments, Agency and Finance. The stock currently has a dividend yield of 1.5%. BID has a PE ratio of 41. Currently there are no analysts that rate Sothebys a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Sothebys has been 1.5 million shares per day over the past 30 days. Sothebys has a market cap of $1.6 billion and is part of the services sector and specialty retail industry. Shares are down 1.2% year-to-date as of the close of trading on Tuesday.
rates Sothebys as a
. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and generally higher debt management risk.
Highlights from the ratings report include:
- The gross profit margin for SOTHEBY'S is rather high; currently it is at 54.38%. Regardless of BID's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -3.32% trails the industry average.
- BID, with its decline in revenue, slightly underperformed the industry average of 0.6%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- SOTHEBY'S 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. 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, SOTHEBY'S reported lower earnings of $0.60 versus $1.68 in the prior year. This year, the market expects an improvement in earnings ($1.62 versus $0.60).
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 41.61%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 116.03% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- 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 Diversified Consumer Services industry. The net income has significantly decreased by 115.1% when compared to the same quarter one year ago, falling from $74.00 million to -$11.15 million.
- You can view the full Sothebys Ratings Report.