Republic Airways Holdings (RJET) Is Weak On High Volume Today

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

  • RJET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.9 million.
  • RJET has traded 1.7 million shares today.
  • RJET is trading at 9.50 times the normal volume for the stock at this time of day.
  • RJET is trading at a new low 16.09% 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 RJET:

Republic Airways Holdings Inc., through its subsidiaries, provides scheduled passenger services. The company offers scheduled passenger service on approximately 1,229 flights daily to approximately 101 cities in the U.S. and Canada. RJET has a PE ratio of 2. Currently there is 1 analyst that rates Republic Airways Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Republic Airways Holdings has been 2.0 million shares per day over the past 30 days. Republic Airways has a market cap of $47.3 million and is part of the services sector and transportation industry. The stock has a beta of 1.70 and a short float of 9.4% with 0.68 days to cover. Shares are down 59.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Republic Airways Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 92.87%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 82.85% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Airlines industry. The net income has significantly decreased by 84.3% when compared to the same quarter one year ago, falling from $18.50 million to $2.90 million.
  • The debt-to-equity ratio is very high at 3.74 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, RJET has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Airlines industry and the overall market, REPUBLIC AIRWAYS HLDGS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has significantly decreased to $23.70 million or 77.62% 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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