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

  • ATI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.9 million.
  • ATI has traded 176,988 shares today.
  • ATI is trading at 3.54 times the normal volume for the stock at this time of day.
  • ATI is trading at a new low 4.05% 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 ATI:

Allegheny Technologies Incorporated produces and sells specialty materials and components worldwide. The company operates through two segments, High Performance Materials and Components; and Flat-Rolled Products. The stock currently has a dividend yield of 3.9%. ATI has a PE ratio of 154. Currently there are 3 analysts that rate Allegheny Technologies a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Allegheny Technologies has been 2.1 million shares per day over the past 30 days. Allegheny has a market cap of $2.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.16 and a short float of 8% with 8.04 days to cover. Shares are down 47.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Allegheny Technologies as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 309.79% to $79.50 million when compared to the same quarter last year. In addition, ALLEGHENY TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of 7.17%.
  • Despite the weak revenue results, ATI has significantly outperformed against the industry average of 44.8%. Since the same quarter one year prior, revenues slightly dropped by 8.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.59, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.95 is weak.
  • 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 Metals & Mining industry. The net income has significantly decreased by 310.0% when compared to the same quarter one year ago, falling from -$4.00 million to -$16.40 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.83%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 400.00% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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