Heavy Early Morning Activity On UBS (UBS)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified UBS ( UBS) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified UBS as such a stock due to the following factors:

  • UBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.1 million.
  • UBS traded 522,100 shares today in the pre-market hours as of 9:10 AM, representing 26.7% of its average daily volume.

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More details on UBS:

UBS AG, a financial services firm, provides wealth management, asset management, and investment banking products and services worldwide. Its Wealth Management division provides financial services to high net worth individuals worldwide. The stock currently has a dividend yield of 0.9%. UBS has a PE ratio of 17.3. Currently there is 1 analyst that rates UBS a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for UBS has been 2.4 million shares per day over the past 30 days. UBS has a market cap of $71.7 billion and is part of the financial sector and banking industry. Shares are up 18.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates UBS as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:
  • The gross profit margin for UBS AG is currently lower than what is desirable, coming in at 30.65%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.46% trails that of the industry average.
  • 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, UBS AG's return on equity significantly trails that of both the industry average and the S&P 500.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • UBS AG reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UBS AG swung to a loss, reporting -$0.64 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus -$0.64).
  • Net operating cash flow has significantly increased by 225.76% to $19,452.26 million when compared to the same quarter last year. Despite an increase in cash flow, UBS AG's cash flow growth rate is still lower than the industry average growth rate of 269.25%.

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