Navios Maritime Partners L.P (NMM) 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 Navios Maritime Partners L.P ( NMM) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Navios Maritime Partners L.P as such a stock due to the following factors:

  • NMM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million
  • NMM has traded 102,678 shares today
  • NMM is trading at 2.26 times the normal volume for the stock at this time of day
  • NMM is trading at a new low 3.1055933207936998741161005455069243907928466796875 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 NMM:

Navios Maritime Partners L.P. owns and operates dry cargo vessels in Europe, Asia, North America, and Australia. The stock currently has a dividend yield of 15.3%. NMM has a PE ratio of 13. Currently there are three analysts that rate Navios Maritime Partners L.P a buy, two analysts rate it a sell, and three rate it a hold.

The average volume for Navios Maritime Partners L.P has been 536,800 shares per day over the past 30 days. Navios Maritime Partners L.P has a market cap of $961.2 million and is part of the services sector and transportation industry. The stock has a beta of 0.97 and a short float of 9.1% with 9.76 days to cover. Shares are up 10.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Navios Maritime Partners L.P as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • NMM's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for NAVIOS MARITIME PARTNERS LP is currently very high, coming in at 92.94%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.15% is above that of the industry average.
  • NMM's debt-to-equity ratio of 0.67 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.75 is very high and demonstrates very strong liquidity.
  • Net operating cash flow has decreased to $27.34 million or 24.66% 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.
  • 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 Marine industry. The net income has significantly decreased by 40.7% when compared to the same quarter one year ago, falling from $18.36 million to $10.88 million.

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