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

  • HAIN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.2 million.
  • HAIN has traded 1.1 million shares today.
  • HAIN is trading at 7.44 times the normal volume for the stock at this time of day.
  • HAIN is trading at a new low 8.01% 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 HAIN:

The Hain Celestial Group, Inc. manufactures, markets, distributes, and sells organic and natural products in the United States, the United Kingdom, Canada, and Europe. HAIN has a PE ratio of 21. Currently there are 13 analysts that rate Hain Celestial Group a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Hain Celestial Group has been 2.0 million shares per day over the past 30 days. Hain Celestial Group has a market cap of $3.7 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.13 and a short float of 11.8% with 6.22 days to cover. Shares are down 10.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hain Celestial Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • HAIN's revenue growth has slightly outpaced the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 6.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
  • HAIN CELESTIAL GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HAIN CELESTIAL GROUP INC increased its bottom line by earning $1.62 versus $1.42 in the prior year. This year, the market expects an improvement in earnings ($2.01 versus $1.62).
  • Net operating cash flow has significantly increased by 121.30% to $5.79 million when compared to the same quarter last year. In addition, HAIN CELESTIAL GROUP INC has also vastly surpassed the industry average cash flow growth rate of -18.12%.

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