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

  • BLMN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.1 million.
  • BLMN has traded 300,385 shares today.
  • BLMN is trading at 13.46 times the normal volume for the stock at this time of day.
  • BLMN 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.

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More details on BLMN:

Bloomin' Brands, Inc., through its subsidiaries, owns and operates casual, upscale casual, and fine dining restaurants primarily in the United States. The stock currently has a dividend yield of 1.5%. BLMN has a PE ratio of 23. Currently there are 6 analysts that rate Bloomin Brands a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Bloomin Brands has been 964,100 shares per day over the past 30 days. Bloomin has a market cap of $2.2 billion and is part of the services sector and leisure industry. The stock has a beta of 0.46 and a short float of 3.8% with 5.12 days to cover. Shares are up 12.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bloomin Brands as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • Net operating cash flow has increased to $130.73 million or 36.22% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.09%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, BLOOMIN' BRANDS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • The debt-to-equity ratio is very high at 3.74 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.23, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 43.1% when compared to the same quarter one year ago, falling from $60.59 million to $34.48 million.

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