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NEW YORK (TheStreet) -- Hampton Roads Bankshares (HMPR) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HAMPTON ROADS BANKSHARES INC (HMPR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HAMPTON ROADS BANKSHARES INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, HAMPTON ROADS BANKSHARES INC turned its bottom line around by earning $0.02 versus -$0.46 in the prior year.
- HMPR, with its decline in revenue, underperformed when compared the industry average of 4.6%. Since the same quarter one year prior, revenues slightly dropped by 8.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to $9.86 million or 58.33% when compared to the same quarter last year. Despite a decrease in cash flow of 58.33%, HAMPTON ROADS BANKSHARES INC is in line with the industry average cash flow growth rate of -63.98%.
- 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 28.8% when compared to the same quarter one year ago, falling from $2.80 million to $2.00 million.
- You can view the full analysis from the report here: HMPR Ratings Report