Strong On High Volume: Gray Television (GTN)

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 Gray Television ( GTN) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Gray Television as such a stock due to the following factors:

  • GTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.1 million.
  • GTN has traded 102,464 shares today.
  • GTN is trading at 4.99 times the normal volume for the stock at this time of day.
  • GTN is trading at a new high 5.19% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 GTN:

Gray Television, Inc. operates as a television broadcast company in the United States. GTN has a PE ratio of 38.4. Currently there are 2 analysts that rate Gray Television a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Gray Television has been 575,900 shares per day over the past 30 days. Gray Television has a market cap of $544.8 million and is part of the services sector and media industry. The stock has a beta of 3.49 and a short float of 8.3% with 5.01 days to cover. Shares are down 30.1% year-to-date as of the close of trading on Friday.

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 Gray Television as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 27.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 54.19% to $12.90 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.29%.
  • Compared to its closing price of one year ago, GTN's share price has jumped by 58.07%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • 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. When compared to other companies in the Media industry and the overall market, GRAY TELEVISION INC's return on equity is below that of both the industry average and the S&P 500.
  • 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 Media industry. The net income has significantly decreased by 69.1% when compared to the same quarter one year ago, falling from $5.14 million to $1.59 million.

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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