Kindred Healthcare (KND) Moving On Heavy Volume In The Pre-Market Hours

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 Kindred Healthcare ( KND) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Kindred Healthcare as such a stock due to the following factors:

  • KND has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.9 million.
  • KND traded 138,679 shares today in the pre-market hours as of 8:35 AM, representing 14.7% of its average daily volume.

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

More details on KND:

Kindred Healthcare, Inc. provides healthcare services in the United States. It operates in four divisions: Hospital, Nursing Center, Rehabilitation, and Care Management. The stock currently has a dividend yield of 2.5%. Currently there are 2 analysts that rate Kindred Healthcare a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Kindred Healthcare has been 835,600 shares per day over the past 30 days. Kindred Healthcare has a market cap of $1.3 billion and is part of the health care sector and health services industry. The stock has a beta of 1.16 and a short float of 8.4% with 4.71 days to cover. Shares are up 1.3% 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 Kindred Healthcare as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 109.67% and other important driving factors, this stock has surged by 40.51% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • KINDRED HEALTHCARE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, KINDRED HEALTHCARE INC continued to lose money by earning -$0.90 versus -$0.94 in the prior year. This year, the market expects an improvement in earnings ($1.04 versus -$0.90).
  • Net operating cash flow has decreased to $90.04 million or 18.70% when compared to the same quarter last year. Despite a decrease in cash flow of 18.70%, KINDRED HEALTHCARE INC is in line with the industry average cash flow growth rate of -20.38%.
  • The debt-to-equity ratio of 1.19 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, KND has managed to keep a strong quick ratio of 1.56, which demonstrates the ability to cover short-term cash needs.

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

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

Dow Tumbles, Stocks Slide on Renewed Trade War Concerns

Dow Tumbles, Stocks Slide on Renewed Trade War Concerns

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern