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

  • CVI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.5 million.
  • CVI has traded 93,636 shares today.
  • CVI is trading at 3.73 times the normal volume for the stock at this time of day.
  • CVI is trading at a new low 3.02% 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 CVI:

CVR Energy, Inc., through its subsidiaries, engages in petroleum refining and nitrogen fertilizer manufacturing activities in the United States. The company operates through two segments, Petroleum and Nitrogen Fertilizer. The stock currently has a dividend yield of 14.2%. CVI has a PE ratio of 12. Currently there are no analysts that rate CVR Energy a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for CVR Energy has been 793,200 shares per day over the past 30 days. CVR Energy has a market cap of $1.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.27 and a short float of 27.7% with 5.47 days to cover. Shares are down 63.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CVR Energy as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.

Highlights from the ratings report include:
  • CVI's debt-to-equity ratio of 0.72 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CVI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.72 is high and demonstrates strong liquidity.
  • The gross profit margin for CVR ENERGY INC is currently extremely low, coming in at 3.01%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -1.78% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $21.60 million or 87.87% 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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