Strong On High Volume: Applied DNA (APDN) - TheStreet

Trade-Ideas LLC identified

Applied DNA

(

APDN

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

  • APDN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.8 million.
  • APDN has traded 1.4 million shares today.
  • APDN is trading at 96.44 times the normal volume for the stock at this time of day.
  • APDN is trading at a new high 15.00% 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 APDN:

Applied DNA Sciences, Inc. provides botanical DNA-based technologies for supply chain security, brand protection, and law enforcement applications in the United States, Europe, and Asia. Currently there are 2 analysts that rate Applied DNA a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Applied DNA has been 282,100 shares per day over the past 30 days. Applied DNA has a market cap of $153.0 million and is part of the technology sector and computer software & services industry. The stock has a beta of -0.11 and a short float of 5.9% with 0.72 days to cover. Shares are up 10.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Applied DNA as a

sell

. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, APPLIED DNA SCIENCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • APPLIED DNA SCIENCES INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, APPLIED DNA SCIENCES INC's EPS of -$0.60 remained unchanged from the prior years' EPS of -$0.60. This year, the market expects an improvement in earnings (-$0.53 versus -$0.60).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Electronic Equipment, Instruments & Components industry average. The net income increased by 12.9% when compared to the same quarter one year prior, going from -$1.92 million to -$1.67 million.
  • This stock has managed to rise its share value by 13.96% over the past twelve months. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • APDN 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. Along with this, the company maintains a quick ratio of 7.89, which clearly demonstrates the ability to cover short-term cash needs.

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