Heavy Early Morning Activity On Royal Bank Of Scotland Group (The (RBS)

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 Royal Bank of Scotland Group (The ( RBS) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Royal Bank of Scotland Group (The as such a stock due to the following factors:

  • RBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.8 million.
  • RBS traded 194,939 shares today in the pre-market hours as of 9:20 AM, representing 20.7% of its average daily volume.

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More details on RBS:

The Royal Bank of Scotland Group plc, through its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. Currently there is 1 analyst that rates Royal Bank of Scotland Group (The a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Royal Bank of Scotland Group (The has been 712,700 shares per day over the past 30 days. Royal Bank of Scotland Group (The has a market cap of $36.8 billion and is part of the financial sector and banking industry. Shares are up 2.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Royal Bank of Scotland Group (The as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 211.2% when compared to the same quarter one year prior, rising from $370.41 million to $1,152.75 million.
  • The gross profit margin for ROYAL BANK OF SCOTLAND GROUP is currently very high, coming in at 83.65%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.35% trails the industry average.
  • 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. 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.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 15.3%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Commercial Banks industry and the overall market, ROYAL BANK OF SCOTLAND GROUP's return on equity significantly trails that of both the industry average and the S&P 500.

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