Trade-Ideas LLC identified

Oceaneering International

(

OII

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

  • OII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.9 million.
  • OII has traded 217,717 shares today.
  • OII is trading at 4.07 times the normal volume for the stock at this time of day.
  • OII is trading at a new low 4.00% 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 OII:

Oceaneering International, Inc. provides engineered services and products to the offshore oil and gas industry worldwide. The stock currently has a dividend yield of 3.1%. OII has a PE ratio of 15. Currently there are 4 analysts that rate Oceaneering International a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Oceaneering International has been 2.1 million shares per day over the past 30 days. Oceaneering International has a market cap of $3.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.48 and a short float of 10.5% with 5.81 days to cover. Shares are down 10.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Oceaneering International as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, OII has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Despite the weak revenue results, OII has outperformed against the industry average of 36.0%. Since the same quarter one year prior, revenues fell by 21.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for OCEANEERING INTERNATIONAL is rather low; currently it is at 24.32%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 3.80% is above that of the industry average.
  • OCEANEERING INTERNATIONAL 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, OCEANEERING INTERNATIONAL reported lower earnings of $2.34 versus $4.01 in the prior year. For the next year, the market is expecting a contraction of 46.6% in earnings ($1.25 versus $2.34).

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