Trade-Ideas LLC identified New York Mortgage ( NYMT) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified New York Mortgage as such a stock due to the following factors:

  • NYMT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.6 million.
  • NYMT has traded 153,998 shares today.
  • NYMT is trading at 2.02 times the normal volume for the stock at this time of day.
  • NYMT is trading at a new high 3.10% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 NYMT:

New York Mortgage Trust, Inc., a real estate investment trust (REIT), engages in acquiring, investing in, financing, and managing mortgage-related and financial assets in the United States. The stock currently has a dividend yield of 14.7%. NYMT has a PE ratio of 12. Currently there are 2 analysts that rate New York Mortgage a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for New York Mortgage has been 830,300 shares per day over the past 30 days. New York has a market cap of $713.3 million and is part of the financial sector and real estate industry. The stock has a beta of 1.53 and a short float of 4.7% with 5.76 days to cover. Shares are up 22.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates New York Mortgage as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 209.09% to $18.52 million when compared to the same quarter last year. In addition, NEW YORK MORTGAGE TRUST INC has also vastly surpassed the industry average cash flow growth rate of -65.75%.
  • NYMT, with its decline in revenue, underperformed when compared the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 10.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 28.0% when compared to the same quarter one year ago, falling from $23.54 million to $16.95 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, NEW YORK MORTGAGE TRUST INC's return on equity is below that of both the industry average and the S&P 500.

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