Today's Water-Logged And Getting Wetter Stock: Kite Realty Group (KRG)

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 Kite Realty Group ( KRG) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Kite Realty Group as such a stock due to the following factors:

  • KRG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.6 million.
  • KRG has traded 154,107 shares today.
  • KRG traded in a range 235.5% of the normal price range with a price range of $0.32.
  • KRG traded below its daily resistance level (quality: 108 days, meaning that the stock is crossing a resistance level set by the last 108 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on KRG:

Kite Realty Group Trust is a publicly owned real estate investment trust. The firm invests in real estate markets of the United States. The stock currently has a dividend yield of 4.2%. Currently there are 4 analysts that rate Kite Realty Group a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Kite Realty Group has been 4.4 million shares per day over the past 30 days. Kite Realty Group has a market cap of $822.0 million and is part of the financial sector and real estate industry. The stock has a beta of 1.06 and a short float of 3.4% with 0.52 days to cover. Shares are down 5.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Kite Realty Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 37.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • This stock has managed to rise its share value by 7.05% over the past twelve months. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for KITE REALTY GROUP TRUST is rather low; currently it is at 22.75%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 10.15% significantly trails the industry average.
  • Net operating cash flow has decreased to $6.46 million or 48.95% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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