When stocks rise on unusual volume, there is a momentum surrounding them. Sometimes that momentum is warranted, sometimes not, but when the market starts to push a stock, it is worth a closer look – whether your intention is to buy the stock or short it.
Here is a list of three stocks that having been trading at unusual volume:
- Rovi Corporation (ROVI) is a company that provides digital entertainment and technology solutions that help manage entertainment content, like interactive program guides and media recognition technologies. It has a $5.14B market cap and an average trading volume of 1.64M. Today, its volume is over 5.3M. ROVI is currently trading at $28.35. Analysts expect the stock to reach $66.11 within the next year. It has a forward P/E ratio of 9.11 and a current ratio of 3.86. Shanda Interactive Entertainment Ltd (SNDA) is a close competitor with a market cap of $2.23B. Of the two, ROVI has the lower forward P/E ratio (SNDA’s is 22.19) and the better current ratio (SNDA’s is 2.41). John Murphy’s Alydar Capital had more than $68.5M in ROVI at the end of June after increasing its position by 32% in the second quarter. Mariko Gordon’s Daruma Asset Management and Mark Kingdon’s Kingdon Capital Management are also fans of the company.
- Intercontinental Hotels Group (IHG) is a lodging company based in the UK. It has a portfolio of various brands, including InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels & Resorts, Holiday Inn Express, Staybridge Suites, Candlewood Suites, and Hotel Indigo. IHG has a $4.95B market cap and an average trading volume of 475K. Today, its volume is over 2.8M. IHG is currently trading at $17.07. Analysts expect the stock to reach $26.33 within the next year. It has a forward P/E ratio of 12.24. Wyndham Worldwide Corporation (WYN) is one of its closest competitors, with its $5.04B market cap. WYN has a lower forward P/E at 11.52 and has performed better YTD, returning 10.87% compared to IHG’s -15.61% loss. WYN also carries high analyst recommendations, but IHG is rated more highly. Paul Reeder and Edward Shapiro’s Par Capital Management, Peter J. Eichler Jr.’s Aletheia Research And Management and Israel Englander’s Millennium Management are fans of IHG.
- Ocwen Financial Corporation (OCN) is a company that provides savings and loans services. Specifically, it provides asset management solutions to owners of subprime mortgages and mortgage processing services like closing and valuation. It has a $1.32B market cap and an average trading volume of 960K. Today, its trading volume is almost 11 times that at 10.9M. OCN recently traded at $13.03 a share. Analysts expect the stock will reach $15.88 within the next 12 months. It has a forward P/E ratio of 7.78. Washington Federal Inc (WFSL) is OCN”s closest competitor, with its $1.44B market cap. In comparison, OCN has a lower forward P/E ratio (7.78 to WFSL’s 9.23) and stronger YTD performance (37% vs. WFSL’s -21.05%). Michael A. Price and Amos Meron’s Empyrean Capital Partners had more than $62.6M in the company at the end of the second quarter. John Kleinheinz’s Kleinheinz Capital Partners and Tom Brown’s Second Curve Capital also like OCN.
