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

  • ASPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million.
  • ASPS has traded 202,853 shares today.
  • ASPS is trading at 9.77 times the normal volume for the stock at this time of day.
  • ASPS is trading at a new low 13.10% 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 ASPS:

Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. ASPS has a PE ratio of 7.3. Currently there is 1 analyst that rates Altisource Portfolio Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Altisource Portfolio Solutions has been 472,400 shares per day over the past 30 days. Altisource has a market cap of $1.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.62 and a short float of 23.7% with 12.59 days to cover. Shares are down 67.6% year-to-date as of the close of trading on Thursday.

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 Altisource Portfolio Solutions as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 36.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ALTISOURCE PORTFOLIO SOLTNS has improved earnings per share by 26.1% 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, ALTISOURCE PORTFOLIO SOLTNS increased its bottom line by earning $5.19 versus $4.43 in the prior year. This year, the market expects an improvement in earnings ($6.89 versus $5.19).
  • 36.35% is the gross profit margin for ALTISOURCE PORTFOLIO SOLTNS which we consider to be strong. Regardless of ASPS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ASPS's net profit margin of 14.69% compares favorably to the industry average.
  • The debt-to-equity ratio is very high at 6.70 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.65, which shows the ability to cover short-term cash needs.
  • Net operating cash flow has significantly decreased to $14.17 million or 78.90% 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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