Trade-Ideas: Bancorp (TBBK) Is Today's Weak On High Relative 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 Bancorp ( TBBK) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Bancorp as such a stock due to the following factors:

  • TBBK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million
  • TBBK has traded 93,719 shares today
  • TBBK is trading at 6.27 times the normal volume for the stock at this time of day
  • TBBK is trading at a new low 12.0009558541429992573057461413554847240447998046875 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 TBBK:

The Bancorp, Inc. operates as the financial holding company for The Bancorp Bank that provides various commercial and retail, and related banking products and services to small and mid-size businesses, and their principals in the United States. TBBK has a PE ratio of 45. Currently there is one analyst that rates Bancorp a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Bancorp has been 170,700 shares per day over the past 30 days. has a market cap of $392.2 million and is part of the financial sector and banking industry. Shares are down 3.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bancorp as a hold. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BANCORP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • BANCORP INC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BANCORP INC reported lower earnings of $0.24 versus $0.46 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus $0.24).
  • 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 Commercial Banks industry. The net income has significantly decreased by 129.9% when compared to the same quarter one year ago, falling from $7.32 million to -$2.19 million.
  • The share price of BANCORP INC has not done very well: it is down 11.42% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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