Impac Mortgage Holdings (IMH) Strong On High Relative 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.

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

  • IMH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • IMH has traded 50,030 shares today.
  • IMH is trading at 38.88 times the normal volume for the stock at this time of day.
  • IMH is trading at a new high 9.12% 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 IMH:

Impac Mortgage Holdings, Inc. operates as an independent residential mortgage lender in the United States. The company operates through three segments: Mortgage Lending, Real Estate Services, and Long-Term Mortgage Portfolio. Currently there is 1 analyst that rates Impac Mortgage Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Impac Mortgage Holdings has been 47,600 shares per day over the past 30 days. Impac has a market cap of $206.5 million and is part of the financial sector and real estate industry. The stock has a beta of -0.19 and a short float of 2.2% with 1.16 days to cover. Shares are up 246.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Impac Mortgage Holdings as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has decreased to $25.48 million or 18.87% when compared to the same quarter last year. Despite a decrease in cash flow of 18.87%, IMPAC MORTGAGE HOLDINGS INC is still significantly exceeding the industry average of -184.63%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, IMPAC MORTGAGE HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.1%. Since the same quarter one year prior, revenues slightly dropped by 1.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • IMPAC MORTGAGE HOLDINGS INC has improved earnings per share by 45.2% 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 year. During the past fiscal year, IMPAC MORTGAGE HOLDINGS INC continued to lose money by earning -$0.44 versus -$0.58 in the prior year.
  • The gross profit margin for IMPAC MORTGAGE HOLDINGS INC is currently very high, coming in at 83.81%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.61% is in-line with the industry average.

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