Weak On High Volume: Boston Private Financial Holdings (BPFH)

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.

Trade-Ideas LLC identified Boston Private Financial Holdings ( BPFH) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Boston Private Financial Holdings as such a stock due to the following factors:

  • BPFH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.1 million.
  • BPFH has traded 59,948 shares today.
  • BPFH is trading at 4.73 times the normal volume for the stock at this time of day.
  • BPFH is trading at a new low 3.08% 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 BPFH:

Boston Private Financial Holdings, Inc. operates as the bank holding company for Boston Private Bank & Trust Company that provides a range of banking and wealth management services. The stock currently has a dividend yield of 2.9%. BPFH has a PE ratio of 17.1. Currently there are 3 analysts that rate Boston Private Financial Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Boston Private Financial Holdings has been 745,300 shares per day over the past 30 days. Boston Private Financial has a market cap of $1.0 billion and is part of the financial sector and banking industry. The stock has a beta of 1.28 and a short float of 4% with 4.92 days to cover. Shares are down 5.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Boston Private Financial Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 12.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BOSTON PRIVATE FINL HOLDINGS has improved earnings per share by 5.5% 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. During the past fiscal year, BOSTON PRIVATE FINL HOLDINGS increased its bottom line by earning $0.72 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.72).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 10.2% when compared to the same quarter one year prior, going from $17.04 million to $18.78 million.
  • The gross profit margin for BOSTON PRIVATE FINL HOLDINGS is currently very high, coming in at 95.44%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.93% is above that of the industry average.

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