Altisource Portfolio Solutions (ASPS) Highlighted As Weak On High Volume

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 $12.4 million.
  • ASPS has traded 88,802 shares today.
  • ASPS is trading at 4.63 times the normal volume for the stock at this time of day.
  • ASPS is trading at a new low 5.17% 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 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 15. 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 500,800 shares per day over the past 30 days. Altisource has a market cap of $441.5 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 69.1% with 8.87 days to cover. Shares are down 16.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Altisource Portfolio Solutions as a hold. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including deteriorating net income, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • ASPS, with its decline in revenue, underperformed when compared the industry average of 17.2%. Since the same quarter one year prior, revenues slightly dropped by 4.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Real Estate Management & Development industry and the overall market, ALTISOURCE PORTFOLIO SOLTNS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • ALTISOURCE PORTFOLIO SOLTNS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse 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).
  • Net operating cash flow has decreased to $40.37 million or 42.93% 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 significantly underperformed when compared to that of the S&P 500 and the Real Estate Management & Development industry. The net income has significantly decreased by 56.5% when compared to the same quarter one year ago, falling from $45.95 million to $19.99 million.

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