Kona Grill (KONA) Strong On High Relative Volume Today

Trade-Ideas LLC identified Kona Grill (KONA) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Kona Grill

(

KONA

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

  • KONA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • KONA has traded 142,391 shares today.
  • KONA is trading at 37.65 times the normal volume for the stock at this time of day.
  • KONA is trading at a new high 4.17% 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 KONA:

Kona Grill, Inc. owns and operates polished casual dining restaurants in the United States. The company's restaurants offer prepared food comprising American food, various appetizers and entrees, and sushi; and alcoholic beverages, such as wines, specialty cocktails, and beers. Currently there are 7 analysts that rate Kona Grill a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Kona Grill has been 129,100 shares per day over the past 30 days. Kona Grill has a market cap of $155.1 million and is part of the services sector and leisure industry. The stock has a beta of 1.31 and a short float of 13.1% with 5.60 days to cover. Shares are down 39.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Kona Grill as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth and largely solid financial position with reasonable debt levels by most measures. 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 disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 21.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • KONA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, KONA has a quick ratio of 2.02, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 34.76%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 109.09% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, KONA GRILL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for KONA GRILL INC is rather low; currently it is at 18.42%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.25% is significantly below that of the industry average.

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