Trade-Ideas LLC identified Starz ( STRZA) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Starz as such a stock due to the following factors:

  • STRZA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.1 million.
  • STRZA has traded 72,404 shares today.
  • STRZA is up 3.2% today.
  • STRZA was down 9.9% yesterday.

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More details on STRZA:

Starz, through its subsidiaries, operates as a media and entertainment company. It operates through Starz Networks, Starz Distribution, and Starz Animation segments. The Starz Networks segment provides premium subscription video programming to U.S. STRZA has a PE ratio of 14. Currently there are 3 analysts that rate Starz a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Starz has been 980,500 shares per day over the past 30 days. Starz has a market cap of $3.4 billion and is part of the services sector and media industry. The stock has a beta of 1.16 and a short float of 7.4% with 5.91 days to cover. Shares are up 12.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Starz as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, unimpressive growth in net income and generally higher debt management risk.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 48.65% is the gross profit margin for STARZ which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.17% is above that of the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The debt-to-equity ratio is very high at 6.62 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, STRZA's quick ratio is somewhat strong at 1.16, demonstrating the ability to handle short-term liquidity needs.
  • Net operating cash flow has significantly decreased to -$20.20 million or 208.02% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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