Strong On High Relative Volume: DHT Holdings (DHT)

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

  • DHT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.5 million.
  • DHT has traded 589,215 shares today.
  • DHT is trading at 17.20 times the normal volume for the stock at this time of day.
  • DHT is trading at a new high 8.04% 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 DHT:

DHT Holdings, Inc. operates as an independent crude oil tanker company. As of February 27, 2014, its fleet consisted of 10 double-hull crude oil tankers, including 6 crude oil tankers in the very large crude carriers, 2 Suezmax tankers, and two Aframax tankers. The stock currently has a dividend yield of 1.3%. Currently there are 3 analysts that rate DHT Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for DHT Holdings has been 1.0 million shares per day over the past 30 days. DHT has a market cap of $561.4 million and is part of the services sector and transportation industry. The stock has a beta of 2.40 and a short float of 5.3% with 2.10 days to cover. Shares are down 10.8% 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 DHT Holdings 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 increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • DHT's very impressive revenue growth greatly exceeded the industry average of 6.3%. Since the same quarter one year prior, revenues leaped by 96.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DHT HOLDINGS 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 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, DHT HOLDINGS INC continued to lose money by earning -$0.52 versus -$5.24 in the prior year. This year, the market expects an improvement in earnings (-$0.12 versus -$0.52).
  • 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.
  • Net operating cash flow has significantly decreased to $2.58 million or 67.41% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 significantly decreased by 71.9% when compared to the same quarter one year ago, falling from -$4.10 million to -$7.05 million.

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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