USA Truck Quick Win by the Algorithm: High Profile and High Volume Trading Leads to USAK Stock Spike

Quick Win by the Algorithm

On June 22, 2017, the I Know First algorithm issued a bullish forecast for USA Truck Inc. (USAK). USAK had a signal of 22.55 and a predictability of 0.27. As a result, the company’s stock increased by 21.18% in 14 days, producing a quick win by the algorithm.

USA Truck Quick Win

USA Truck Inc. is a truckload carrier providing transportation of commodities across the United States and parts of Mexico and Canada. The company operates through two different segments: Trucking and Logistics. The company’s fleet consists of approximately 1,568 company tractors and 264 independent contractor tractors. The Trucking segment focuses on truckload and dedicated freight services, while the Logistics segment operates as a freight brokerage and rail intermodal service. USAK is headquartered in Van Buren, Arkansas, and was founded on September 29, 1986. 

USAK Quick Win

USAK’s rise over the past few weeks is in part due to insider and institutional optimism. Over the past 4 months, there have been 14 insider buys of the stock and not a single sell. This shows investors that those close to the company perceive it as undervalued. Furthermore, large hedge funds and banks are gobbling up USAK stock, another strong sign for the company. Blackrock Japan, Vanguard, Barclays, and Bank of America are a few of the notable names to disclose their holdings of USAK. Such optimism gives individual investors the confidence to trade USAK stock, thereby driving up its share price.

Additionally, there were multiple trading volume spikes that led to price increases of over 10% on two separate days. Trading totaled 107,000 on June 26, and 189,000 shares on June 28. Both numbers are larger than the daily average of about 100,000 shares. Volume trading leads to price increases in the short term, especially when noteworthy names are some of the traders.

USAK now hopes to continue its price growth before reporting new earnings in early August.

This bullish forecast on USAK was sent to current I Know First subscribers on June 22, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.