Trade-Ideas LLC identified Virgin America ( VA) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Virgin America as such a stock due to the following factors:

  • VA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $88.4 million.
  • VA traded 186,005 shares today in the pre-market hours as of 7:38 AM, representing 11.3% of its average daily volume.

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More details on VA:

Virgin America Inc. provides scheduled air travel services. The company has a fleet of 60 Airbus single-aisle aircraft consisting of 10 Airbus A319s and 50 Airbus A320s. As of December 31, 2015, it provided services to 23 airports in the United States and Mexico. VA has a PE ratio of 5. Currently there are 4 analysts that rate Virgin America a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for Virgin America has been 860,200 shares per day over the past 30 days. Virgin America has a market cap of $1.7 billion and is part of the services sector and transportation industry. Shares are up 7.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Virgin America as a hold. 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 and notable return on equity. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.38, 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 1.24, which illustrates the ability to avoid short-term cash problems.
  • VIRGIN AMERICA 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, VIRGIN AMERICA INC increased its bottom line by earning $7.65 versus $1.06 in the prior year. For the next year, the market is expecting a contraction of 51.6% in earnings ($3.70 versus $7.65).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Airlines industry average, but is greater than that of the S&P 500. The net income increased by 4830.4% when compared to the same quarter one year prior, rising from $3.87 million to $190.91 million.
  • Net operating cash flow has significantly decreased to $23.77 million or 76.46% 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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