Today's Weak On High Volume Stock: Yandex (YNDX)

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

  • YNDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.0 million.
  • YNDX has traded 1.9 million shares today.
  • YNDX is trading at 13.65 times the normal volume for the stock at this time of day.
  • YNDX is trading at a new low 15.02% 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 YNDX:

Yandex N.V. operates an Internet search engine in Russia and internationally. YNDX has a PE ratio of 15.4. Currently there are 9 analysts that rate Yandex a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Yandex has been 2.6 million shares per day over the past 30 days. Yandex has a market cap of $4.7 billion and is part of the technology sector and internet industry. The stock has a beta of 2.34 and a short float of 1.1% with 0.69 days to cover. Shares are down 55.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Yandex as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The gross profit margin for YANDEX NV is currently very high, coming in at 73.51%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 38.35% significantly outperformed against the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.43, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.60 is very high and demonstrates very strong liquidity.
  • 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 Internet Software & Services industry. The net income has significantly decreased by 43.1% when compared to the same quarter one year ago, falling from $156.61 million to $89.10 million.
  • Net operating cash flow has declined marginally to $103.44 million or 1.95% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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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