Abraxas Petroleum (AXAS) Stock: 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 Abraxas Petroleum ( AXAS) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Abraxas Petroleum as such a stock due to the following factors:

  • AXAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.3 million.
  • AXAS has traded 427,473 shares today.
  • AXAS is trading at 2.58 times the normal volume for the stock at this time of day.
  • AXAS 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.

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More details on AXAS:

Abraxas Petroleum Corporation, an independent energy company, is engaged in the acquisition, exploitation, development, and production of oil and gas in the United States and Canada. AXAS has a PE ratio of 5.1. Currently there are 4 analysts that rate Abraxas Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Abraxas Petroleum has been 3.0 million shares per day over the past 30 days. Abraxas has a market cap of $335.1 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.67 and a short float of 12.8% with 3.43 days to cover. Shares are down 2.5% year-to-date as of the close of trading on Wednesday.

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 Abraxas Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

Highlights from the ratings report include:
  • AXAS's very impressive revenue growth greatly exceeded the industry average of 6.4%. Since the same quarter one year prior, revenues leaped by 51.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ABRAXAS PETROLEUM CORP/NV 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ABRAXAS PETROLEUM CORP/NV turned its bottom line around by earning $0.41 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($0.44 versus $0.41).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.46 is very weak and demonstrates a lack of ability to pay short-term obligations.

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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