AB Volvo (OTCMKTS:VLVLY) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• AB Volvo shares traded about 966,283 shares midday—513% above average volume—and were last at $32.09, up from the prior close of $31.206.
• Analyst sentiment is mixed but averages to Hold: two analysts rate the stock Strong Buy, six Hold, and two Sell; recent ratings included downgrades from Citigroup and Erste Group Bank.
• Latest quarterly results matched the consensus EPS estimate at $0.55, while revenue of $12.04 billion fell short of the $12.53 billion estimate.

AB Volvo (OTCMKTS:VLVLY - Get Free Report) saw strong trading volume on Wednesday. Approximately 966,283 shares traded hands during mid-day trading, an increase of 513% from the average daily volume of 157,683 shares. The stock last traded at $32.09 and had previously closed at $31.2060.

Wall Street Analyst Weigh In

Several research firms have issued reports on VLVLY. Citigroup cut AB Volvo from a "strong-buy" rating to a "hold" rating in a research report on Monday. Zacks Research downgraded AB Volvo from a "hold" rating to a "strong sell" rating in a research note on Monday, October 5th. Finally, Erste Group Bank lowered AB Volvo from a "strong-buy" rating to a "hold" rating in a report on Wednesday, October 21st. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold".

AB Volvo Price Performance

The firm has a market cap of $65.21 billion, a PE ratio of 15.72, a price-to-earnings-growth ratio of 0.81 and a beta of 1.24. The company has a current ratio of 1.10, a quick ratio of 0.82 and a debt-to-equity ratio of 0.85. The company has a 50 day moving average price of $33.17 and a 200 day moving average price of $34.73.

AB Volvo (OTCMKTS:VLVLY - Get Free Report) last released its quarterly earnings data on Friday, October 23rd. The company reported $0.55 earnings per share for the quarter, meeting the consensus estimate of $0.55. The firm had revenue of $12.04 billion during the quarter, compared to the consensus estimate of $12.53 billion. AB Volvo had a return on equity of 21.50% and a net margin of 8.12%. On average, sell-side analysts expect that AB Volvo will post 2.11 EPS for the current year.

AB Volvo Company Profile

AB Volvo is a Sweden-based manufacturer of commercial vehicles and transportation-related products. Founded in 1927 and headquartered in Gothenburg, the company develops and sells trucks, buses, construction equipment, and marine and industrial engines. AB Volvo is separate from Volvo Cars, which became an independent company in 1999.

The company's commercial vehicle operations include heavy-duty, medium-duty, and light-duty trucks sold under brands such as Volvo Trucks, Mack Trucks, Renault Trucks, and UD Trucks.

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