Strong On High Volume: Kandi Technologies Group (KNDI)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Kandi Technologies Group ( KNDI) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Kandi Technologies Group as such a stock due to the following factors:

  • KNDI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.9 million.
  • KNDI has traded 363,361 shares today.
  • KNDI is trading at 3.75 times the normal volume for the stock at this time of day.
  • KNDI is trading at a new high 5.08% 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 KNDI:

Kandi Technologies Group, Inc., through its subsidiaries, designs, develops, manufactures, and commercializes electric vehicles (EVs), EV parts, and off-road vehicles in the People's Republic of China and internationally. KNDI has a PE ratio of 12.

The average volume for Kandi Technologies Group has been 825,000 shares per day over the past 30 days. Kandi Technologies Group has a market cap of $433.7 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.12 and a short float of 21.5% with 12.31 days to cover. Shares are down 29.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Kandi Technologies Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.3%. Since the same quarter one year prior, revenues slightly increased by 9.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • KNDI's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.05, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly decreased to -$9.48 million or 211.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • KNDI has underperformed the S&P 500 Index, declining 24.53% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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Today's Weak On High Volume Stock: Kandi Technologies Group (KNDI)

Today's Weak On High Volume Stock: Kandi Technologies Group (KNDI)

Kandi Technologies Group (KNDI) Stock: Weak On High Volume Today

Kandi Technologies Group (KNDI) Stock: Weak On High Volume Today