Ascena Retail Group (ASNA) Strong On High Relative Volume Today

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

  • ASNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.9 million.
  • ASNA has traded 262,754 shares today.
  • ASNA is trading at 2.48 times the normal volume for the stock at this time of day.
  • ASNA is trading at a new high 3.09% 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 ASNA:

Ascena Retail Group, Inc., through its subsidiaries, operates as a specialty retailer of clothing, shoes, and accessories for missy, plus-size women, and tween girls in the United States, Canada, and Puerto Rico. Currently there are 5 analysts that rate Ascena Retail Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Ascena Retail Group has been 2.7 million shares per day over the past 30 days. Ascena Retail Group has a market cap of $1.6 billion and is part of the services sector and retail industry. The stock has a beta of 1.67 and a short float of 17.1% with 19.88 days to cover. Shares are down 17.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ascena Retail Group as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 Specialty Retail industry. The net income has significantly decreased by 38.5% when compared to the same quarter one year ago, falling from $24.40 million to $15.00 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, ASCENA RETAIL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $2.20 million or 96.88% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 39.19%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 46.66% compared to the year-earlier quarter. 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.
  • ASCENA RETAIL GROUP INC's earnings per share declined by 46.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ASCENA RETAIL GROUP INC swung to a loss, reporting -$1.46 versus $0.84 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus -$1.46).

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