Healthways (HWAY) Weak On High Volume Today

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

  • HWAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.0 million.
  • HWAY has traded 74,010 shares today.
  • HWAY is trading at 7.02 times the normal volume for the stock at this time of day.
  • HWAY is trading at a new low 3.05% 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.

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

More details on HWAY:

Healthways, Inc., together with its subsidiaries, provides population health management solutions to help people to enhance well-being and health. The company provides personalized solutions for individuals, irrespective of their health status, age, or paying sponsor. HWAY has a PE ratio of 185. Currently there are 4 analysts that rate Healthways a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Healthways has been 427,400 shares per day over the past 30 days. Healthways has a market cap of $398.5 million and is part of the health care sector and health services industry. The stock has a beta of -0.10 and a short float of 9.3% with 6.19 days to cover. Shares are down 44.3% year-to-date as of the close of trading on Thursday.

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 Healthways as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:
  • HWAY's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HEALTHWAYS 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, HEALTHWAYS INC continued to lose money by earning -$0.16 versus -$0.25 in the prior year. This year, the market expects an improvement in earnings ($0.11 versus -$0.16).
  • The debt-to-equity ratio is somewhat low, currently at 0.83, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.76 is somewhat weak and could be cause for future problems.
  • The gross profit margin for HEALTHWAYS INC is rather low; currently it is at 19.48%. Regardless of HWAY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.21% trails the industry average.
  • HWAY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.05%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.

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

Amazon May Become a Theater Near You; Shaich Scoops Zoe's Kitchen -- ICYMI

Amazon May Become a Theater Near You; Shaich Scoops Zoe's Kitchen -- ICYMI

Trump Rants on Earnings Season After Complaints From Buffett, Dimon

Trump Rants on Earnings Season After Complaints From Buffett, Dimon

Dow Trades Higher, Nasdaq Regains Footing as Chipmakers Fall

Dow Trades Higher, Nasdaq Regains Footing as Chipmakers Fall

Here's Why Stock Picking Is Especially Important in the Retail Sector

Here's Why Stock Picking Is Especially Important in the Retail Sector

Tesla Has Lost 15% Since Musk's Take-Private Tweet

Tesla Has Lost 15% Since Musk's Take-Private Tweet