Fly Leasing (FLY): Today's Weak 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 Fly Leasing ( FLY) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Fly Leasing as such a stock due to the following factors:

  • FLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.7 million.
  • FLY has traded 204,235 shares today.
  • FLY is trading at 2.37 times the normal volume for the stock at this time of day.
  • FLY is trading at a new low 3.10% 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.

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

More details on FLY:

FLY Leasing Limited, together with its subsidiaries, engages in purchasing and leasing commercial aircraft under multi-year contracts to various airlines worldwide. The stock currently has a dividend yield of 6%. FLY has a PE ratio of 9. Currently there are 4 analysts that rate Fly Leasing a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Fly Leasing has been 239,700 shares per day over the past 30 days. Fly Leasing has a market cap of $659.2 million and is part of the services sector and diversified services industry. Shares are up 22.7% year-to-date as of the close of trading on Thursday.

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 Fly Leasing as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and attractive valuation levels. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.1%. Since the same quarter one year prior, revenues rose by 34.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Net operating cash flow has increased to $61.76 million or 14.86% when compared to the same quarter last year. Despite an increase in cash flow, FLY LEASING LTD -ADR's average is still marginally south of the industry average growth rate of 23.50%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Trading Companies & Distributors industry and the overall market, FLY LEASING LTD -ADR's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The debt-to-equity ratio is very high at 3.86 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.

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.

More from Markets

China to Slash Automobile Tariffs and 4 Other Stories You Must Know Tuesday

China to Slash Automobile Tariffs and 4 Other Stories You Must Know Tuesday

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know

China Slashes Auto Import Tariffs as Trump's Trade Push Gets Big Early Win

China Slashes Auto Import Tariffs as Trump's Trade Push Gets Big Early Win

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

Global Stocks Push Higher as China Tariff Move, Softer US Dollar Boost Sentiment

Global Stocks Push Higher as China Tariff Move, Softer US Dollar Boost Sentiment