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

  • HOS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.9 million.
  • HOS has traded 114,581 shares today.
  • HOS is trading at 3.38 times the normal volume for the stock at this time of day.
  • HOS is trading at a new low 3.07% 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 HOS:

Hornbeck Offshore Services, Inc., together with its subsidiaries, provides marine transportation, subsea installation, and accommodation support services to exploration and production, oilfield service, offshore construction, and the U.S. military customers. HOS has a PE ratio of 13. Currently there is 1 analyst that rates Hornbeck Offshore Services a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Hornbeck Offshore Services has been 1.1 million shares per day over the past 30 days. Hornbeck Offshore Services has a market cap of $311.2 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.15 and a short float of 26.5% with 9.03 days to cover. Shares are down 8.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hornbeck Offshore Services as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • 39.20% is the gross profit margin for HORNBECK OFFSHORE SVCS INC which we consider to be strong. Regardless of HOS's high profit margin, it has managed to decrease from the same period last year.
  • HOS, with its decline in revenue, slightly underperformed the industry average of 35.7%. Since the same quarter one year prior, revenues fell by 42.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Energy Equipment & Services industry. The net income has significantly decreased by 121.0% when compared to the same quarter one year ago, falling from $35.85 million to -$7.51 million.
  • Net operating cash flow has decreased to $39.25 million or 36.10% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, HORNBECK OFFSHORE SVCS INC has marginally lower results.

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