Aircastle (AYR) Stock: Weak On High Volume Today

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

  • AYR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.1 million.
  • AYR has traded 74,406 shares today.
  • AYR is trading at 3.49 times the normal volume for the stock at this time of day.
  • AYR is trading at a new low 5.01% 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 AYR:

Aircastle Limited, through its subsidiaries, acquires, leases, and sells commercial jet aircraft to airlines. The company also invests in other aviation assets, including debt investments secured by commercial jet aircraft. The stock currently has a dividend yield of 4.5%. AYR has a PE ratio of 14. Currently there are 6 analysts that rate Aircastle a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Aircastle has been 586,500 shares per day over the past 30 days. Aircastle has a market cap of $1.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.86 and a short float of 6.3% with 10.86 days to cover. Shares are up 1.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Aircastle as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins 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:
  • Net operating cash flow has increased to $117.82 million or 26.94% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.12%.
  • The gross profit margin for AIRCASTLE LTD is currently very high, coming in at 92.09%. Regardless of AYR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AYR's net profit margin of 25.16% significantly outperformed against the industry.
  • AIRCASTLE LTD's earnings per share declined by 30.0% 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, AIRCASTLE LTD increased its bottom line by earning $1.50 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.50).
  • AYR, with its decline in revenue, slightly underperformed the industry average of 4.9%. Since the same quarter one year prior, revenues fell by 13.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Trading Companies & Distributors industry and the overall market, AIRCASTLE LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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