Ardmore Shipping (ASC) Strong On High Relative Volume Today

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

  • ASC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.8 million.
  • ASC has traded 81,329 shares today.
  • ASC is trading at 5.27 times the normal volume for the stock at this time of day.
  • ASC is trading at a new high 3.05% 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 ASC:

Ardmore Shipping Corporation engages in the seaborne transportation of petroleum products and chemicals through product and chemical tankers worldwide. As of December 31, 2015, the company operated 24 vessels. The stock currently has a dividend yield of 7.9%. ASC has a PE ratio of 8. Currently there are 8 analysts that rate Ardmore Shipping a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Ardmore Shipping has been 328,400 shares per day over the past 30 days. Ardmore Shipping has a market cap of $209.1 million and is part of the services sector and transportation industry. Shares are down 38% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ardmore Shipping as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The debt-to-equity ratio of 1.18 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, ASC maintains a poor quick ratio of 0.94, which illustrates the inability to avoid short-term cash problems.
  • ASC has underperformed the S&P 500 Index, declining 23.08% from its price level of one year ago. 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.
  • ARDMORE SHIPPING CORP has improved earnings per share by 30.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ARDMORE SHIPPING CORP increased its bottom line by earning $1.23 versus $0.05 in the prior year. For the next year, the market is expecting a contraction of 6.5% in earnings ($1.15 versus $1.23).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ARDMORE SHIPPING CORP's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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