Dana (DAN) Flagged As Strong On High Volume

Trade-Ideas LLC identified Dana (DAN) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Dana

(

DAN

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Dana as such a stock due to the following factors:

  • DAN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.3 million.
  • DAN has traded 405,207 shares today.
  • DAN is trading at 4.70 times the normal volume for the stock at this time of day.
  • DAN is trading at a new high 4.07% 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 DAN:

Dana Holding Corporation manufactures and sells driveline, sealing, and thermal-management products for vehicle manufacturers in North America, Europe, South America, and the Asia Pacific. The stock currently has a dividend yield of 2.1%. DAN has a PE ratio of 13. Currently there are 3 analysts that rate Dana a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Dana has been 1.9 million shares per day over the past 30 days. Dana has a market cap of $1.7 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.58 and a short float of 3% with 1.55 days to cover. Shares are down 9.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Dana as a

hold

. Among the primary strengths of the company is its attractive valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • DAN, with its decline in revenue, slightly underperformed the industry average of 0.0%. Since the same quarter one year prior, revenues slightly dropped by 9.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • DANA HOLDING CORP's earnings per share declined by 21.1% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, DANA HOLDING CORP reported lower earnings of $0.92 versus $1.93 in the prior year. This year, the market expects an improvement in earnings ($1.61 versus $0.92).
  • The gross profit margin for DANA HOLDING CORP is rather low; currently it is at 16.56%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 3.10% is above that of the industry average.
  • Net operating cash flow has decreased to -$27.00 million or 35.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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