Pioneer Energy Services (PES) Is Strong On High Volume Today

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

  • PES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • PES has traded 413,769 shares today.
  • PES is trading at 4.68 times the normal volume for the stock at this time of day.
  • PES is trading at a new high 10.11% 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.

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More details on PES:

Pioneer Energy Services Corp. provides land-based drilling and production services to oil and gas exploration and production companies in the United States and Colombia. Currently there is 1 analyst that rates Pioneer Energy Services a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Pioneer Energy Services has been 732,800 shares per day over the past 30 days. Pioneer Energy Services has a market cap of $194.7 million and is part of the basic materials sector and energy industry. The stock has a beta of 3.28 and a short float of 4.3% with 3.73 days to cover. Shares are up 63.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pioneer Energy Services as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

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 Energy Equipment & Services industry. The net income has significantly decreased by 130.5% when compared to the same quarter one year ago, falling from -$12.02 million to -$27.70 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, PIONEER ENERGY SERVICES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PIONEER ENERGY SERVICES CORP is currently lower than what is desirable, coming in at 30.24%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to $9.63 million or 85.16% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio of 1.23 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, PES's quick ratio is somewhat strong at 1.35, demonstrating the ability to handle short-term liquidity needs.

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