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

  • MSEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • MSEX has traded 89,403 shares today.
  • MSEX is trading at 3.83 times the normal volume for the stock at this time of day.
  • MSEX is trading at a new high 3.21% 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 MSEX:

Middlesex Water Company, through its subsidiaries, owns and operates regulated water utility and wastewater systems. The company operates in two segments, Regulated and Non-Regulated. The stock currently has a dividend yield of 2%. MSEX has a PE ratio of 33.

The average volume for Middlesex Water has been 81,100 shares per day over the past 30 days. Middlesex Water has a market cap of $641.5 million and is part of the utilities sector and utilities industry. The stock has a beta of 0.55 and a short float of 2.9% with 2.76 days to cover. Shares are up 51.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Middlesex Water as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 31.81% and other important driving factors, this stock has surged by 73.09% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MSEX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MIDDLESEX WATER CO has improved earnings per share by 31.8% 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. During the past fiscal year, MIDDLESEX WATER CO increased its bottom line by earning $1.22 versus $1.14 in the prior year.
  • 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 Water Utilities industry average. The net income increased by 31.7% when compared to the same quarter one year prior, rising from $3.64 million to $4.79 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 37.41% is the gross profit margin for MIDDLESEX WATER CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.66% is above that of the industry average.

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