Outerwall (OUTR): Heavy Pre-Market Activity

Trade-Ideas LLC identified Outerwall ( OUTR) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Outerwall as such a stock due to the following factors:

  • OUTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.7 million.
  • OUTR traded 258,323 shares today in the pre-market hours as of 9:10 AM, representing 68.4% of its average daily volume.

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More details on OUTR:

Outerwall Inc., through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom. The stock currently has a dividend yield of 3.2%. OUTR has a PE ratio of 17. Currently there are 3 analysts that rate Outerwall a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Outerwall has been 424,000 shares per day over the past 30 days. Outerwall has a market cap of $798.6 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.67 and a short float of 65.3% with 20.71 days to cover. Shares are up 28.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Outerwall as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 8.0% when compared to the same quarter one year prior, going from $35.60 million to $38.45 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, OUTERWALL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • OUTERWALL INC's earnings per share improvement from the most recent quarter was slightly positive. 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, OUTERWALL INC reported lower earnings of $2.69 versus $6.04 in the prior year. This year, the market expects an improvement in earnings ($6.24 versus $2.69).
  • The gross profit margin for OUTERWALL INC is currently lower than what is desirable, coming in at 29.85%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.17% trails that of the industry average.
  • Net operating cash flow has decreased to $67.21 million or 36.64% 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.

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