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

  • HA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.9 million.
  • HA has traded 181,537 shares today.
  • HA is trading at 2.79 times the normal volume for the stock at this time of day.
  • HA is trading at a new low 4.01% 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.

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

More details on HA:

Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., engages in the scheduled air transportation of passengers and cargo. HA has a PE ratio of 15. Currently there are 4 analysts that rate Hawaiian Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Hawaiian Holdings has been 1.4 million shares per day over the past 30 days. Hawaiian has a market cap of $1.3 billion and is part of the services sector and transportation industry. The stock has a beta of 1.19 and a short float of 11.3% with 3.64 days to cover. Shares are down 3.3% 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 Hawaiian Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 500.00% and other important driving factors, this stock has surged by 70.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • HAWAIIAN HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HAWAIIAN HOLDINGS INC increased its bottom line by earning $1.06 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($2.80 versus $1.06).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 2.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 80.74% to $161.69 million when compared to the same quarter last year. In addition, HAWAIIAN HOLDINGS INC has also modestly surpassed the industry average cash flow growth rate of 74.17%.

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%