Trade-Ideas LLC identified Old National Bancorp ( ONB) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Old National Bancorp as such a stock due to the following factors:

  • ONB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.3 million.
  • ONB has traded 237,342 shares today.
  • ONB is trading at 5.68 times the normal volume for the stock at this time of day.
  • ONB is trading at a new low 4.06% 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 ONB:

Old National Bancorp operates as the holding company for Old National Bank, which provides various financial services to individual and commercial customers in the United States. It operates in two segments, Banking and Insurance. The stock currently has a dividend yield of 4%. ONB has a PE ratio of 12. Currently there are no analysts that rate Old National Bancorp a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Old National Bancorp has been 931,100 shares per day over the past 30 days. Old has a market cap of $1.4 billion and is part of the financial sector and banking industry. The stock has a beta of 0.88 and a short float of 5% with 3.92 days to cover. Shares are down 9.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Old National Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, expanding profit margins, growth in earnings per share and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Banks industry average. The net income increased by 29.3% when compared to the same quarter one year prior, rising from $29.13 million to $37.67 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for OLD NATIONAL BANCORP is currently very high, coming in at 94.18%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 25.10% trails the industry average.
  • OLD NATIONAL BANCORP has improved earnings per share by 26.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OLD NATIONAL BANCORP reported lower earnings of $0.95 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus $0.95).

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