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

  • ICON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • ICON has traded 117,251 shares today.
  • ICON is trading at 2.78 times the normal volume for the stock at this time of day.
  • ICON 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 ICON:

Iconix Brand Group, Inc., a brand management company, owns a portfolio of consumer brands across women's, men's, entertainment, and home industries in the United States and internationally. Currently there is 1 analyst that rates Iconix Brand Group a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Iconix Brand Group has been 1.3 million shares per day over the past 30 days. Iconix Brand Group has a market cap of $364.5 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.55 and a short float of 45.5% with 15.96 days to cover. Shares are up 13.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Iconix Brand Group as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 71.5% when compared to the same quarter one year ago, falling from $65.36 million to $18.62 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 72.49%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 70.63% 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.
  • ICONIX BRAND GROUP 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ICONIX BRAND GROUP INC swung to a loss, reporting -$3.98 versus $1.72 in the prior year. This year, the market expects an improvement in earnings ($1.20 versus -$3.98).
  • ICON, with its decline in revenue, underperformed when compared the industry average of 16.4%. Since the same quarter one year prior, revenues slightly dropped by 1.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for ICONIX BRAND GROUP INC is currently very high, coming in at 100.00%. ICON has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, ICON's net profit margin of 19.67% compares favorably to the industry average.

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