Hannon Armstrong Sustainable Infrastructure (HASI) Weak 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 Hannon Armstrong Sustainable Infrastructure ( HASI) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Hannon Armstrong Sustainable Infrastructure as such a stock due to the following factors:

  • HASI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • HASI has traded 69,617 shares today.
  • HASI is trading at 5.23 times the normal volume for the stock at this time of day.
  • HASI is trading at a new low 6.01% 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 HASI:

Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides debt and equity financing to the energy efficiency and renewable energy markets in the United States. The stock currently has a dividend yield of 5%. HASI has a PE ratio of 63. Currently there are 6 analysts that rate Hannon Armstrong Sustainable Infrastructure a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Hannon Armstrong Sustainable Infrastructure has been 173,500 shares per day over the past 30 days. Hannon Armstrong Sustainable Infrastructure has a market cap of $672.3 million and is part of the financial sector and real estate industry. The stock has a beta of 1.24 and a short float of 2.8% with 4.85 days to cover. Shares are up 49.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hannon Armstrong Sustainable Infrastructure as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins 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 underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Investment Trusts (REITs) industry average. The net income has decreased by 22.9% when compared to the same quarter one year ago, dropping from $2.75 million to $2.12 million.
  • The gross profit margin for HANNON ARMSTRONG SUST INFR is rather low; currently it is at 16.97%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 15.31% significantly trails the industry average.
  • Net operating cash flow has decreased to $14.97 million or 33.48% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, HANNON ARMSTRONG SUST INFR underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Compared to its closing price of one year ago, HASI's share price has jumped by 41.96%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.

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