Trade-Ideas: UTi Worldwide (UTIW) Is Today's Pre-Market Mover With Heavy Volume Stock

Trade-Ideas LLC identified UTi Worldwide ( UTIW) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified UTi Worldwide as such a stock due to the following factors:

  • UTIW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
  • UTIW traded 2.9 million shares today in the pre-market hours as of 7:40 AM, representing 187% of its average daily volume.

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More details on UTIW:

UTi Worldwide Inc. operates as a non-asset-based supply chain services and solutions company. It operates through two segments, Freight Forwarding, and Contract Logistics and Distribution. Currently there is 1 analyst that rates UTi Worldwide a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for UTi Worldwide has been 1.4 million shares per day over the past 30 days. UTi Worldwide has a market cap of $499.5 million and is part of the services sector and transportation industry. The stock has a beta of 0.79 and a short float of 17.7% with 9.35 days to cover. Shares are down 59.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates UTi Worldwide as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 Air Freight & Logistics industry. The net income has significantly decreased by 222.6% when compared to the same quarter one year ago, falling from -$21.93 million to -$70.73 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Air Freight & Logistics industry and the overall market, UTI WORLDWIDE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 55.60%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 191.66% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • UTI WORLDWIDE 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, UTI WORLDWIDE INC reported poor results of -$2.10 versus -$0.73 in the prior year. This year, the market expects an improvement in earnings (-$0.65 versus -$2.10).
  • UTIW, with its decline in revenue, underperformed when compared the industry average of 0.6%. Since the same quarter one year prior, revenues fell by 16.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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