Strong On High Relative Volume: Ritchie Bros Auctioneers (RBA)

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

  • RBA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.3 million.
  • RBA has traded 107,546 shares today.
  • RBA is trading at 7.21 times the normal volume for the stock at this time of day.
  • RBA is trading at a new high 4.02% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in RBA with the Ticky from Trade-Ideas. See the FREE profile for RBA NOW at Trade-Ideas

More details on RBA:

Ritchie Bros. The stock currently has a dividend yield of 2.2%. RBA has a PE ratio of 29.8. Currently there are 6 analysts that rate Ritchie Bros Auctioneers a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Ritchie Bros Auctioneers has been 627,500 shares per day over the past 30 days. Ritchie Bros Auctioneers has a market cap of $2.7 billion and is part of the services sector and diversified services industry. Shares are down 5.6% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ritchie Bros Auctioneers as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • RBA's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • RBA's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.23, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for RITCHIE BROS AUCTIONEERS INC is currently very high, coming in at 87.35%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.15% significantly outperformed against the industry average.
  • RITCHIE BROS AUCTIONEERS INC's earnings per share declined by 12.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, RITCHIE BROS AUCTIONEERS INC reported lower earnings of $0.85 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus $0.85).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Services & Supplies industry average. The net income has decreased by 13.2% when compared to the same quarter one year ago, dropping from $33.75 million to $29.28 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

If you liked this article you might like

Citigroup Shrugs Off One-Time Charge; Nutella Maker Continues U.S. Push -- ICYMI

Citigroup Shrugs Off One-Time Charge; Nutella Maker Continues U.S. Push -- ICYMI

Ritchie Bros. (RBA) Price Target Raised at Baird on IronPlanet Acquisition

Ritchie Bros. (RBA) Price Target Raised at Baird on IronPlanet Acquisition

Ritchie Bros. (RBA) Stock Pops, Oppenheimer: $758 Million IronPlanet Deal 'Logical'

Ritchie Bros. (RBA) Stock Pops, Oppenheimer: $758 Million IronPlanet Deal 'Logical'

Ritchie Bros. (RBA) Stock Surges on $758 Million IronPlanet Deal

Ritchie Bros. (RBA) Stock Surges on $758 Million IronPlanet Deal

Analysts' Actions -- American Eagle, Best Buy, Sony, Valeant and More

Analysts' Actions -- American Eagle, Best Buy, Sony, Valeant and More