Fly Leasing (FLY) Is Strong On High Volume Today

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

  • FLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • FLY has traded 53,496 shares today.
  • FLY is trading at 4.21 times the normal volume for the stock at this time of day.
  • FLY is trading at a new high 3.24% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in FLY with the Ticky from Trade-Ideas. See the FREE profile for FLY NOW at Trade-Ideas More details on FLY: FLY Leasing Limited, together with its subsidiaries, engages in purchasing and leasing commercial aircraft under multi-year contracts to various airlines worldwide. The stock currently has a dividend yield of 7.7%. FLY has a PE ratio of 9. Currently there are 4 analysts that rate Fly Leasing a buy, 1 analyst rates it a sell, and 2 rate it a hold. The average volume for Fly Leasing has been 277,500 shares per day over the past 30 days. Fly Leasing has a market cap of $484.4 million and is part of the services sector and diversified services industry. Shares are down 14% year-to-date as of the close of trading on Monday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Fly Leasing as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
  • FLY has underperformed the S&P 500 Index, declining 21.54% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The debt-to-equity ratio is very high at 3.73 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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. Compared to other companies in the Trading Companies & Distributors industry and the overall market, FLY LEASING LTD -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $20.30 million or 63.67% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • FLY LEASING LTD -ADR reported significant earnings per share improvement 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, FLY LEASING LTD -ADR reported lower earnings of $0.14 versus $1.32 in the prior year. This year, the market expects an improvement in earnings ($1.68 versus $0.14).

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