Strong On High Volume: Interval Leisure Group (IILG)

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

  • IILG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.8 million.
  • IILG has traded 420,612 shares today.
  • IILG is trading at 2.81 times the normal volume for the stock at this time of day.
  • IILG is trading at a new high 4.00% 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 IILG:

Interval Leisure Group, Inc., together with its subsidiaries, provides non-traditional lodging covering a portfolio of leisure businesses from vacation exchange and rental to vacation ownership. The company operates through two segments, Exchange and Rental, and Vacation Ownership. The stock currently has a dividend yield of 2.8%. IILG has a PE ratio of 14. Currently there are 3 analysts that rate Interval Leisure Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Interval Leisure Group has been 2.9 million shares per day over the past 30 days. Interval Leisure Group has a market cap of $2.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.49 and a short float of 5.6% with 2.88 days to cover. Shares are up 9.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Interval Leisure Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels 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:
  • IILG's revenue growth trails the industry average of 11.0%. Since the same quarter one year prior, revenues slightly increased by 0.7%. 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 debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has decreased to $40.11 million or 38.01% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Hotels, Restaurants & Leisure industry average, but is greater than that of the S&P 500. The net income has decreased by 12.2% when compared to the same quarter one year ago, dropping from $25.26 million to $22.18 million.

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