First Niagara Financial Group (FNFG) Flagged As Strong On High Volume

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 First Niagara Financial Group ( FNFG) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified First Niagara Financial Group as such a stock due to the following factors:

  • FNFG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.0 million.
  • FNFG has traded 1.9 million shares today.
  • FNFG is trading at 7.86 times the normal volume for the stock at this time of day.
  • FNFG is trading at a new high 5.06% 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 FNFG:

First Niagara Financial Group, Inc. operates as the bank holding company for First Niagara Bank, N.A. that provides retail and commercial banking, and other financial services to individuals, families, and businesses. The stock currently has a dividend yield of 4.3%. Currently there is 1 analyst that rates First Niagara Financial Group a buy, 3 analysts rate it a sell, and 10 rate it a hold.

The average volume for First Niagara Financial Group has been 4.0 million shares per day over the past 30 days. First Niagara Financial Group has a market cap of $2.6 billion and is part of the financial sector and banking industry. The stock has a beta of 1.31 and a short float of 2.3% with 1.73 days to cover. Shares are down 29.9% year-to-date as of the close of trading on Tuesday.

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 First Niagara Financial Group as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The gross profit margin for FIRST NIAGARA FINANCIAL GRP is currently very high, coming in at 86.29%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -173.17% is in-line with the industry average.
  • FNFG, with its decline in revenue, slightly underperformed the industry average of 0.1%. Since the same quarter one year prior, revenues slightly dropped by 4.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • FIRST NIAGARA FINANCIAL GRP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FIRST NIAGARA FINANCIAL GRP increased its bottom line by earning $0.75 versus $0.40 in the prior year. For the next year, the market is expecting a contraction of 286.7% in earnings (-$1.40 versus $0.75).
  • 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 Commercial Banks industry. The net income has significantly decreased by 930.4% when compared to the same quarter one year ago, falling from $79.14 million to -$657.23 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Commercial Banks industry and the overall market, FIRST NIAGARA FINANCIAL GRP's return on equity significantly trails that of both the industry average and the S&P 500.

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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