Trade-Ideas: Gray Television (GTN) Is Today's Strong On High Relative 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 Gray Television ( GTN) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Gray Television as such a stock due to the following factors:

  • GTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.9 million.
  • GTN has traded 120,845 shares today.
  • GTN is trading at 2.51 times the normal volume for the stock at this time of day.
  • GTN is trading at a new high 3.03% 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 GTN:

Gray Television, Inc., a television broadcast company, owns and/or operates television stations and digital assets in the United States. GTN has a PE ratio of 15. Currently there are 2 analysts that rate Gray Television a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Gray Television has been 656,600 shares per day over the past 30 days. Gray Television has a market cap of $919.5 million and is part of the services sector and media industry. The stock has a beta of 3.85 and a short float of 3% with 2.57 days to cover. Shares are up 29.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Gray Television as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 4.2%. Since the same quarter one year prior, revenues rose by 46.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 35.77% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although GTN had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • 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 Media industry and the overall market on the basis of return on equity, GRAY TELEVISION INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for GRAY TELEVISION INC is currently lower than what is desirable, coming in at 34.85%. Regardless of GTN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.19% trails the industry average.
  • Although GTN's debt-to-equity ratio of 3.18 is very high, it is currently less than that of the industry average. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 4.10, which shows the ability to cover short-term cash needs.

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