DeVry Education Group (DV) Weak On High Volume

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 DeVry Education Group ( DV) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified DeVry Education Group as such a stock due to the following factors:

  • DV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.8 million.
  • DV has traded 54,457 shares today.
  • DV is trading at 2.46 times the normal volume for the stock at this time of day.
  • DV 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 DV:

DeVry Education Group Inc. provides educational services worldwide. It operates in three segments: Medical and Healthcare; International and Professional Educational; and Business, Technology and Management. The stock currently has a dividend yield of 1.1%. DV has a PE ratio of 15. Currently there are 2 analysts that rate DeVry Education Group a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for DeVry Education Group has been 698,700 shares per day over the past 30 days. DeVry Education Group has a market cap of $2.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.20 and a short float of 6% with 6.83 days to cover. Shares are down 32.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates DeVry Education Group as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:
  • DV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.41, which illustrates the ability to avoid short-term cash problems.
  • 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 Diversified Consumer Services industry and the overall market on the basis of return on equity, DEVRY EDUCATION GROUP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has decreased to $117.06 million or 22.00% when compared to the same quarter last year. Despite a decrease in cash flow of 22.00%, DEVRY EDUCATION GROUP INC is still significantly exceeding the industry average of -186.26%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.46%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 26.43% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, DV is still more expensive than most of the other companies in its industry.

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