Trade-Ideas LLC identified SVB Financial Group ( SIVB) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified SVB Financial Group as such a stock due to the following factors:

  • SIVB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.6 million.
  • SIVB has traded 138,752 shares today.
  • SIVB traded in a range 269% of the normal price range with a price range of $8.57.
  • SIVB traded below its daily resistance level (quality: 114 days, meaning that the stock is crossing a resistance level set by the last 114 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on SIVB:

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. SIVB has a PE ratio of 15. Currently there are 14 analysts that rate SVB Financial Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for SVB Financial Group has been 615,900 shares per day over the past 30 days. SVB Financial Group has a market cap of $5.1 billion and is part of the financial sector and banking industry. The stock has a beta of 1.36 and a short float of 5.3% with 5.02 days to cover. Shares are down 11.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SVB Financial Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • SIVB's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 1.5%. 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.
  • Net operating cash flow has increased to $56.06 million or 17.73% when compared to the same quarter last year. In addition, SVB FINANCIAL GROUP has also vastly surpassed the industry average cash flow growth rate of -155.48%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, SVB FINANCIAL GROUP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • SVB FINANCIAL GROUP's earnings per share declined by 11.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SVB FINANCIAL GROUP increased its bottom line by earning $6.62 versus $5.36 in the prior year. This year, the market expects an improvement in earnings ($6.92 versus $6.62).
  • The gross profit margin for SVB FINANCIAL GROUP is currently very high, coming in at 88.47%. Regardless of SIVB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.95% trails the industry average.

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