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

  • TK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.3 million.
  • TK has traded 91,858 shares today.
  • TK is trading at 2.16 times the normal volume for the stock at this time of day.
  • TK is trading at a new low 5.04% 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 TK:

Teekay Corporation primarily provides crude oil and gas marine transportation services in Bermuda and internationally. The company operates through Offshore Logistics, Offshore Production, Liquefied Gas Carriers, and Conventional Tankers segments. The stock currently has a dividend yield of 2.2%. TK has a PE ratio of 9. Currently there is 1 analyst that rates Teekay a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Teekay has been 1.7 million shares per day over the past 30 days. Teekay has a market cap of $860.2 million and is part of the services sector and transportation industry. The stock has a beta of 1.53 and a short float of 7.2% with 1.71 days to cover. Shares are up 6.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Teekay as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 24.6%. Since the same quarter one year prior, revenues rose by 17.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TEEKAY CORP's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 399.6% when compared to the same quarter one year ago, falling from -$9.76 million to -$48.78 million.
  • The debt-to-equity ratio is very high at 8.63 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.

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