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

  • IILG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
  • IILG has traded 78,066 shares today.
  • IILG is trading at 11.36 times the normal volume for the stock at this time of day.
  • IILG is trading at a new low 5.30% 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 IILG:

Interval Leisure Group, Inc., together with its subsidiaries, provides lodging and leisure services to the vacation industry in the United States, Europe, and internationally. The company operates through two segments, Exchange and Rental, and Vacation Ownership. The stock currently has a dividend yield of 3%. IILG has a PE ratio of 12. Currently there are 2 analysts that rate Interval Leisure Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Interval Leisure Group has been 227,800 shares per day over the past 30 days. Interval Leisure Group has a market cap of $917.0 million and is part of the services sector and diversified services industry. The stock has a beta of 1.20 and a short float of 5.9% with 7.43 days to cover. Shares are down 23.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Interval Leisure Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 18.6%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.97, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.48 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • INTERVAL LEISURE GROUP's earnings per share declined by 10.8% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, INTERVAL LEISURE GROUP reported lower earnings of $1.37 versus $1.41 in the prior year. For the next year, the market is expecting a contraction of 8.0% in earnings ($1.26 versus $1.37).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Hotels, Restaurants & Leisure industry average, but is greater than that of the S&P 500. The net income has decreased by 10.3% when compared to the same quarter one year ago, dropping from $21.30 million to $19.10 million.

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