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 Atlas Resource Partners ( ARP) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Atlas Resource Partners as such a stock due to the following factors:
- ARP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.5 million.
- ARP traded 370,425 shares today in the pre-market hours as of 7:59 AM, representing 69.1% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ARP with the Ticky from Trade-Ideas. See the FREE profile for ARP NOW at Trade-Ideas More details on ARP: Atlas Resource Partners, L.P. operates as an independent developer and producer of natural gas, crude oil, and natural gas liquids in the United States. The company operates in three segments: Gas and Oil Production, Well Construction and Completion, and Other Partnership Management. The stock currently has a dividend yield of 11.2%. Currently there is 1 analyst that rates Atlas Resource Partners a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for Atlas Resource Partners has been 629,100 shares per day over the past 30 days. Atlas Resource has a market cap of $1.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.51 and a short float of 10.6% with 5.40 days to cover. Shares are up 0.2% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Atlas Resource Partners as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally high debt management risk and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 111.5% when compared to the same quarter one year ago, falling from -$18.91 million to -$40.00 million.
- 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 Oil, Gas & Consumable Fuels industry and the overall market, ATLAS RESOURCE PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ATLAS RESOURCE PARTNERS LP is rather low; currently it is at 20.44%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -22.08% is significantly below that of the industry average.
- ARP's debt-to-equity ratio of 0.88 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 0.44 is very low and demonstrates very weak liquidity.
- The share price of ATLAS RESOURCE PARTNERS LP has not done very well: it is down 15.28% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full Atlas Resource Partners Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.