Triangle Capital (TCAP) Is Weak On High Volume Today

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

  • TCAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • TCAP has traded 74,175 shares today.
  • TCAP is trading at 7.45 times the normal volume for the stock at this time of day.
  • TCAP is trading at a new low 4.28% 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 TCAP:

Triangle Capital Corporation is a business development company specializing in private equity and mezzanine investments. The stock currently has a dividend yield of 9.5%. TCAP has a PE ratio of 9. Currently there are 4 analysts that rate Triangle Capital a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Triangle Capital has been 185,200 shares per day over the past 30 days. Triangle has a market cap of $636.9 million and is part of the financial sector and financial services industry. The stock has a beta of 0.98 and a short float of 1.8% with 3.50 days to cover. Shares are up 0.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Triangle Capital as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • TRIANGLE CAPITAL CORP has improved earnings per share by 48.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TRIANGLE CAPITAL CORP increased its bottom line by earning $1.44 versus $1.04 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.44).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 48.8% when compared to the same quarter one year prior, rising from $8.35 million to $12.43 million.
  • Despite the weak revenue results, TCAP has outperformed against the industry average of 24.5%. Since the same quarter one year prior, revenues fell by 13.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Capital Markets industry and the overall market, TRIANGLE CAPITAL CORP's return on equity is below that of both the industry average and the S&P 500.
  • TCAP has underperformed the S&P 500 Index, declining 22.80% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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