Today's Roof Leaker Stock Is Ventas (VTR)

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 Ventas ( VTR) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ventas as such a stock due to the following factors:

  • VTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $108.8 million.
  • VTR has traded 614,343 shares today.
  • VTR is trading at 3.48 times the normal volume for the stock at this time of day.
  • VTR crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on VTR:

Ventas, Inc. is a publicly owned real estate investment trust. The firm engages in investment, management, financing, and leasing of properties in the healthcare industry. It invests in the real estate markets of the United States and Canada. The stock currently has a dividend yield of 4.5%. VTR has a PE ratio of 38.3. Currently there are 3 analysts that rate Ventas a buy, 3 analysts rate it a sell, and 6 rate it a hold.

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