Leju Holdings (LEJU) Is Strong On High Volume Today

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 Leju Holdings ( LEJU) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Leju Holdings as such a stock due to the following factors:

  • LEJU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.1 million.
  • LEJU has traded 124,544 shares today.
  • LEJU is trading at 3.17 times the normal volume for the stock at this time of day.
  • LEJU is trading at a new high 5.05% 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 LEJU:

Leju Holdings Limited, through its subsidiaries, provides online real estate services in the People's Republic of China. The stock currently has a dividend yield of 1.9%. LEJU has a PE ratio of 14. Currently there are 2 analysts that rate Leju Holdings a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Leju Holdings has been 610,800 shares per day over the past 30 days. Leju has a market cap of $1.2 billion and is part of the financial sector and real estate industry. Shares are down 14.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Leju Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

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 Internet Software & Services industry. The net income has significantly decreased by 337.4% when compared to the same quarter one year ago, falling from $2.24 million to -$5.32 million.
  • Net operating cash flow has significantly decreased to -$24.20 million or 461.19% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LEJU HOLDINGS LTD -ADR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This year, the market expects an improvement in earnings ($0.65 versus $0.50).
  • The gross profit margin for LEJU HOLDINGS LTD -ADR is currently very high, coming in at 84.13%. Regardless of LEJU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LEJU's net profit margin of -5.68% significantly underperformed when compared to the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 29.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 300.00% compared to the year-earlier quarter.

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