Trade-Ideas LLC identified

Hornbeck Offshore Services

(

HOS

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

  • HOS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.6 million.
  • HOS has traded 107,614 shares today.
  • HOS is trading at 3.08 times the normal volume for the stock at this time of day.
  • HOS is trading at a new low 8.11% 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 HOS:

Hornbeck Offshore Services, Inc., through its subsidiaries, operates offshore supply vessels (OSVs) and multi-purpose support vessels (MPSVs) in the U.S. Gulf of Mexico, Latin America, and internationally. HOS has a PE ratio of 5. Currently there are 5 analysts that rate Hornbeck Offshore Services a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Hornbeck Offshore Services has been 960,300 shares per day over the past 30 days. Hornbeck Offshore Services has a market cap of $417.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.90 and a short float of 26.2% with 10.17 days to cover. Shares are down 54.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hornbeck Offshore Services as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • HOS's debt-to-equity ratio of 0.75 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.82 is very high and demonstrates very strong liquidity.
  • 47.26% is the gross profit margin for HORNBECK OFFSHORE SVCS INC which we consider to be strong. Regardless of HOS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HOS's net profit margin of 12.40% compares favorably to the industry average.
  • Net operating cash flow has decreased to $49.72 million or 15.86% when compared to the same quarter last year. Despite a decrease in cash flow of 15.86%, HORNBECK OFFSHORE SVCS INC is in line with the industry average cash flow growth rate of -18.35%.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, HORNBECK OFFSHORE SVCS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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