Trade-Ideas LLC identified

HFF

(

HF

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

  • HF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.9 million.
  • HF has traded 71,976 shares today.
  • HF is trading at 9.04 times the normal volume for the stock at this time of day.
  • HF is trading at a new low 3.13% 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.

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More details on HF:

HFF, Inc. provides commercial real estate and capital market services to the users and providers of capital in the United States commercial real estate industry. HF has a PE ratio of 13. Currently there is 1 analyst that rates HFF a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for HFF has been 223,400 shares per day over the past 30 days. HFF has a market cap of $1.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.01 and a short float of 3% with 7.46 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates HFF as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 24.3%. Since the same quarter one year prior, revenues rose by 24.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Compared to other companies in the Capital Markets industry and the overall market, HFF INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for HFF INC is rather low; currently it is at 24.53%. Regardless of HF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.80% trails the industry average.
  • HF's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.35%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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