Impac Mortgage Holdings (IMH) Is Today's Strong On High Volume Stock

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 $7.3 million.
  • IMH has traded 90,639 shares today.
  • IMH is trading at 32.54 times the normal volume for the stock at this time of day.
  • IMH is trading at a new high 4.20% 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 82,600 shares per day over the past 30 days. Impac has a market cap of $216.8 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 0.42 days to cover. Shares are up 243.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Impac Mortgage Holdings as a sell. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

Highlights from the ratings report include:
  • IMPAC MORTGAGE HOLDINGS INC reported significant earnings per share improvement 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 1245.4% when compared to the same quarter one year prior, rising from -$2.97 million to $33.97 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, IMPAC MORTGAGE HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • This stock has increased by 263.93% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in IMH do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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