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 $28.0 million.
  • ATI has traded 261,607 shares today.
  • ATI is trading at 3.79 times the normal volume for the stock at this time of day.
  • ATI is trading at a new low 6.07% 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 4.1%. ATI has a PE ratio of 145. Currently there are 4 analysts that rate Allegheny Technologies a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Allegheny Technologies has been 1.8 million shares per day over the past 30 days. Allegheny has a market cap of $1.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.36 and a short float of 9.5% with 5.88 days to cover. Shares are down 51.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Allegheny Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.39%, 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.
  • 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.
  • The gross profit margin for ALLEGHENY TECHNOLOGIES INC is currently extremely low, coming in at 12.22%. Regardless of ATI's low profit margin, it has managed to increase from the same period last year.
  • ALLEGHENY TECHNOLOGIES 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ALLEGHENY TECHNOLOGIES INC continued to lose money by earning -$0.02 versus -$0.93 in the prior year. For the next year, the market is expecting a contraction of 2925.0% in earnings (-$0.61 versus -$0.02).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ALLEGHENY TECHNOLOGIES INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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