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

  • AGRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
  • AGRO has traded 71,486 shares today.
  • AGRO is trading at 3.95 times the normal volume for the stock at this time of day.
  • AGRO is trading at a new high 3.08% 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 AGRO:

Adecoagro S.A., an agricultural company, engages in farming, energy production, and land transformation activities. It operates through Farming; Sugar, Ethanol and Energy; and Land Transformation businesses. Currently there are 2 analysts that rate Adecoagro a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Adecoagro has been 243,900 shares per day over the past 30 days. Adecoagro has a market cap of $1.4 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.62 and a short float of 0.9% with 1.39 days to cover. Shares are up 35.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Adecoagro as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 139.60% to $5.69 million when compared to the same quarter last year. In addition, ADECOAGRO SA has also vastly surpassed the industry average cash flow growth rate of -23.54%.
  • ADECOAGRO SA reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ADECOAGRO SA turned its bottom line around by earning $0.01 versus -$0.24 in the prior year. This year, the market expects an improvement in earnings ($0.35 versus $0.01).
  • Compared to its closing price of one year ago, AGRO's share price has jumped by 26.43%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The debt-to-equity ratio of 1.16 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, AGRO maintains a poor quick ratio of 0.87, which illustrates the inability to avoid short-term cash problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Food Products industry average, but is greater than that of the S&P 500. The net income has decreased by 2.3% when compared to the same quarter one year ago, dropping from $1.48 million to $1.45 million.

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