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

  • VSLR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
  • VSLR has traded 377,077 shares today.
  • VSLR is trading at 5.52 times the normal volume for the stock at this time of day.
  • VSLR is trading at a new low 11.03% 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 VSLR:

Vivint Solar, Inc. provides distributed solar energy to residential, commercial, and industrial customers in the United States. It operates through two segments, Residential and C&I. VSLR has a PE ratio of 29. Currently there are no analysts that rate Vivint Solar a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Vivint Solar has been 729,500 shares per day over the past 30 days. Vivint Solar has a market cap of $294.2 million and is part of the technology sector and electronics industry. Shares are down 71.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Vivint Solar as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, weak operating cash flow and feeble growth in its earnings per share.

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 75.92%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Net operating cash flow has decreased to -$44.61 million or 43.68% when compared to the same quarter last year. Despite a decrease in cash flow of 43.68%, VIVINT SOLAR INC is in line with the industry average cash flow growth rate of -52.69%.
  • VIVINT SOLAR INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, VIVINT SOLAR INC turned its bottom line around by earning $0.11 versus -$0.40 in the prior year. For the next year, the market is expecting a contraction of 2354.5% in earnings (-$2.48 versus $0.11).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Independent Power Producers & Energy Traders industry average, but is less than that of the S&P 500. The net income has significantly decreased by 114.8% when compared to the same quarter one year ago, falling from -$6.14 million to -$13.19 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.83, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.

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