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

  • TIF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $147.5 million.
  • TIF has traded 498,666 shares today.
  • TIF is trading at 5.01 times the normal volume for the stock at this time of day.
  • TIF is trading at a new low 4.01% 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 TIF:

Tiffany & Co., through its subsidiaries, designs, manufactures, and retails jewelry and other items worldwide. Its jewelry products include fine and solitaire jewelry; engagement rings and wedding bands; and non-gemstone, sterling silver, and gold jewelry. The stock currently has a dividend yield of 2.9%. TIF has a PE ratio of 18. Currently there are 7 analysts that rate Tiffany a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Tiffany has been 2.0 million shares per day over the past 30 days. Tiffany has a market cap of $7.9 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.88 and a short float of 13.2% with 5.20 days to cover. Shares are down 21.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tiffany as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.41, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for TIFFANY & CO is rather high; currently it is at 67.06%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.81% is above that of the industry average.
  • TIF, with its decline in revenue, slightly underperformed the industry average of 6.8%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has decreased to $79.10 million or 44.91% 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 company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Specialty Retail industry average. The net income has decreased by 16.6% when compared to the same quarter one year ago, dropping from $104.90 million to $87.50 million.

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