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

  • MDU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
  • MDU has traded 99,180 shares today.
  • MDU is trading at 3.24 times the normal volume for the stock at this time of day.
  • MDU is trading at a new low 5.00% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 MDU:

MDU Resources Group, Inc. operates as a diversified natural resource company in the United States. The company's Electric segment generates, transmits, and distributes electricity in Montana, North Dakota, South Dakota, and Wyoming. The stock currently has a dividend yield of 3.9%. MDU has a PE ratio of 13. Currently there are 2 analysts that rate MDU Resources Group a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for MDU Resources Group has been 1.1 million shares per day over the past 30 days. MDU Resources Group has a market cap of $3.7 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.04 and a short float of 3.6% with 8.37 days to cover. Shares are down 18.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates MDU Resources Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. 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 poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues slightly increased by 3.5%. 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.
  • Net operating cash flow has slightly increased to $79.07 million or 7.57% when compared to the same quarter last year. Despite an increase in cash flow, MDU RESOURCES GROUP INC's cash flow growth rate is still lower than the industry average growth rate of 29.13%.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Multi-Utilities industry. The net income has significantly decreased by 524.4% when compared to the same quarter one year ago, falling from $54.11 million to -$229.60 million.
  • The gross profit margin for MDU RESOURCES GROUP INC is currently extremely low, coming in at 10.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -23.28% is significantly below that of the industry average.

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