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

  • HRTG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.5 million.
  • HRTG has traded 64,495 shares today.
  • HRTG is trading at 2.40 times the normal volume for the stock at this time of day.
  • HRTG is trading at a new low 5.09% 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 HRTG:

Heritage Insurance Holdings, Inc. operates as a property and casualty insurance holding company in the state of Florida. HRTG has a PE ratio of 7. Currently there are 3 analysts that rate Heritage Insurance Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Heritage Insurance Holdings has been 277,600 shares per day over the past 30 days. Heritage has a market cap of $690.8 million and is part of the financial sector and insurance industry. Shares are up 16.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Heritage Insurance Holdings as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:
  • Compared to other companies in the Insurance industry and the overall market, HERITAGE INSURANCE HOLDINGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • HRTG's very impressive revenue growth greatly exceeded the industry average of 15.7%. Since the same quarter one year prior, revenues leaped by 53.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HRTG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • 42.51% is the gross profit margin for HERITAGE INSURANCE HOLDINGS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.83% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 84.13% to $32.44 million when compared to the same quarter last year. In addition, HERITAGE INSURANCE HOLDINGS has also vastly surpassed the industry average cash flow growth rate of -13.77%.

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