Boardwalk Pipeline Partners (BWP) Is Weak On High Volume Today

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 Boardwalk Pipeline Partners ( BWP) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Boardwalk Pipeline Partners as such a stock due to the following factors:

  • BWP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.6 million.
  • BWP has traded 213,076 shares today.
  • BWP is trading at 5.33 times the normal volume for the stock at this time of day.
  • BWP is trading at a new low 5.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BWP with the Ticky from Trade-Ideas. See the FREE profile for BWP NOW at Trade-Ideas

More details on BWP:

Boardwalk Pipeline Partners, LP, through its subsidiaries, provides transportation, storage, gathering, and processing services for natural gas and natural gas liquids (NGLs). The company operates interstate natural gas and NGLs pipeline systems, including integrated storage facilities. The stock currently has a dividend yield of 2.4%. BWP has a PE ratio of 17.8. Currently there are 4 analysts that rate Boardwalk Pipeline Partners a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Boardwalk Pipeline Partners has been 1.2 million shares per day over the past 30 days. Boardwalk Pipeline has a market cap of $4.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.37 and a short float of 1.8% with 2.35 days to cover. Shares are down 32.9% 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 Boardwalk Pipeline Partners as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. 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:
  • BWP's revenue growth has slightly outpaced the industry average of 1.9%. Since the same quarter one year prior, revenues slightly increased by 1.6%. 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 increased to $172.30 million or 10.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.46%.
  • The gross profit margin for BOARDWALK PIPELINE PRTNRS-LP is rather high; currently it is at 56.61%. Regardless of BWP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BWP's net profit margin of 19.56% significantly outperformed against the industry.
  • 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BOARDWALK PIPELINE PRTNRS-LP's return on equity is significantly below that of the industry average and is below that of 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 Oil, Gas & Consumable Fuels industry. The net income has decreased by 18.6% when compared to the same quarter one year ago, dropping from $70.50 million to $57.40 million.

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

null

More from Markets

Jim Cramer: Aramark Is a Great Company but It's Levered to Baseball

Jim Cramer: Aramark Is a Great Company but It's Levered to Baseball

Preferred Stock & Common Stock: What's the Difference?

Preferred Stock & Common Stock: What's the Difference?

It's Not Over Yet: Keep an Eye on FANG Stocks

It's Not Over Yet: Keep an Eye on FANG Stocks

5 Stocks That Are Screaming Buys Right Now

5 Stocks That Are Screaming Buys Right Now

Jim Cramer on the Markets: 2:45pm Is a Make or Break Level

Jim Cramer on the Markets: 2:45pm Is a Make or Break Level