HCC Insurance Holdings (HCC): Heavy Pre-Market Activity

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 HCC Insurance Holdings ( HCC) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified HCC Insurance Holdings as such a stock due to the following factors:

  • HCC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.5 million.
  • HCC traded 41,883 shares today in the pre-market hours as of 7:46 AM, representing 13.7% of its average daily volume.

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

More details on HCC:

HCC Insurance Holdings, Inc. underwrites non-correlated specialty insurance products worldwide. The company operates in five segments: U.S. Property & Casualty, Professional Liability, Accident & Health, U.S. Surety & Credit, and International. The U.S. The stock currently has a dividend yield of 2.1%. HCC has a PE ratio of 12. Currently there are 4 analysts that rate HCC Insurance Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for HCC Insurance Holdings has been 328,800 shares per day over the past 30 days. HCC has a market cap of $5.5 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.85 and a short float of 1.1% with 2.86 days to cover. Shares are up 6.3% year-to-date as of the close of trading on Monday.

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 HCC Insurance Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, notable return on equity and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 4.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although HCC's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Insurance industry average. The net income increased by 4.6% when compared to the same quarter one year prior, going from $107.91 million to $112.92 million.
  • 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 Insurance industry and the overall market on the basis of return on equity, HCC INSURANCE HOLDINGS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%