Weak On High Volume: Altisource Portfolio Solutions (ASPS)

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

  • ASPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.5 million.
  • ASPS has traded 126,786 shares today.
  • ASPS is trading at 6.91 times the normal volume for the stock at this time of day.
  • ASPS is trading at a new low 7.02% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ASPS with the Ticky from Trade-Ideas. See the FREE profile for ASPS NOW at Trade-Ideas

More details on ASPS:

Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. ASPS has a PE ratio of 1. Currently there is 1 analyst that rates Altisource Portfolio Solutions a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Altisource Portfolio Solutions has been 494,100 shares per day over the past 30 days. Altisource has a market cap of $520.0 million and is part of the services sector and diversified services industry. The stock has a beta of 1.37 and a short float of 48.2% with 17.44 days to cover. Shares are up 3.4% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Altisource Portfolio Solutions as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Management & Development industry. The net income increased by 400.1% when compared to the same quarter one year prior, rising from $3.70 million to $18.49 million.
  • ASPS's revenue growth trails the industry average of 16.9%. Since the same quarter one year prior, revenues slightly increased by 4.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ALTISOURCE PORTFOLIO SOLTNS reported significant earnings per share improvement 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, ALTISOURCE PORTFOLIO SOLTNS reported lower earnings of $1.87 versus $5.56 in the prior year. This year, the market expects an improvement in earnings ($6.13 versus $1.87).
  • In its most recent trading session, ASPS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The debt-to-equity ratio is very high at 8.79 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, ASPS has managed to keep a strong quick ratio of 2.46, which demonstrates the ability to cover short-term cash needs.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.