Omega Protein (OME) Stock: Weak On High Volume Today

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

  • OME has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.0 million.
  • OME has traded 192,046 shares today.
  • OME is trading at 4.91 times the normal volume for the stock at this time of day.
  • OME is trading at a new low 3.10% 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 OME:

Omega Protein Corporation develops, produces, and delivers products to enhance the nutritional integrity of foods, dietary supplements, and animal feeds worldwide. It operates in two segments, Animal Nutrition and Human Nutrition. OME has a PE ratio of 17. Currently there are no analysts that rate Omega Protein a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Omega Protein has been 374,500 shares per day over the past 30 days. Omega Protein has a market cap of $373.9 million and is part of the consumer goods sector and food & beverage industry. Shares are down 23% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Omega Protein as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, OME's share price has jumped by 26.91%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OME should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 35.71% is the gross profit margin for OMEGA PROTEIN CORP which we consider to be strong. 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 3.55% trails the industry average.
  • OMEGA PROTEIN CORP's earnings per share declined by 20.0% 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, OMEGA PROTEIN CORP increased its bottom line by earning $1.07 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus $1.07).
  • OME's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful 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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