Strong On High Relative Volume: Endeavour Silver (EXK)

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

  • EXK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.5 million.
  • EXK has traded 595,178 shares today.
  • EXK is trading at 2.61 times the normal volume for the stock at this time of day.
  • EXK is trading at a new high 6.06% 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 EXK:

Endeavour Silver Corp., a mid-tier precious metals mining company, engages in acquisition, exploration, development, extraction, processing, refining, and reclamation of mining properties in Mexico and Chile. The company primarily explores for silver and gold deposits. Currently there is 1 analyst that rates Endeavour Silver a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Endeavour Silver has been 2.4 million shares per day over the past 30 days. Endeavour has a market cap of $438.7 million and is part of the basic materials sector and metals & mining industry. Shares are up 202.1% year-to-date as of the close of trading on Tuesday.

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TheStreet Quant Ratings rates Endeavour Silver as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • 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 Metals & Mining industry and the overall market, ENDEAVOUR SILVER CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ENDEAVOUR SILVER CORP is currently lower than what is desirable, coming in at 27.52%. It has decreased significantly from the same period last year.
  • Net operating cash flow has significantly decreased to -$2.83 million or 166.02% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • ENDEAVOUR SILVER CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ENDEAVOUR SILVER CORP reported poor results of -$1.47 versus -$0.74 in the prior year.
  • Despite the weak revenue results, EXK has outperformed against the industry average of 45.6%. Since the same quarter one year prior, revenues fell by 18.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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