Republic Airways Holdings (RJET) Highlighted As 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 Republic Airways Holdings ( RJET) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Republic Airways Holdings as such a stock due to the following factors:

  • RJET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • RJET has traded 69,652 shares today.
  • RJET is trading at 2.30 times the normal volume for the stock at this time of day.
  • RJET is trading at a new low 3.11% 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 RJET:

Republic Airways Holdings Inc., through its subsidiaries, provides scheduled passenger services. The company offers scheduled passenger service on approximately 1,229 flights daily to approximately 101 cities in the U.S. and Canada. RJET has a PE ratio of 11. Currently there are 2 analysts that rate Republic Airways Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Republic Airways Holdings has been 619,100 shares per day over the past 30 days. Republic Airways has a market cap of $594.7 million and is part of the services sector and transportation industry. The stock has a beta of 1.40 and a short float of 3.1% with 3.67 days to cover. Shares are down 20.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Republic Airways Holdings as a sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Airlines industry. The net income has significantly decreased by 54.3% when compared to the same quarter one year ago, falling from $14.00 million to $6.40 million.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • REPUBLIC AIRWAYS HLDGS INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, REPUBLIC AIRWAYS HLDGS INC increased its bottom line by earning $1.22 versus $0.90 in the prior year. This year, the market expects an improvement in earnings ($1.26 versus $1.22).
  • RJET's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 1.0%. 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.

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