Which Stock Has the Most Volume? Trading volume is a key performance indicator for technical analysis of a stock – a higher volume of trades signifies the level of interest in the company.
When a stock is considered too risky or otherwise undesirable, there may be a massive push to sell. That means nothing without a buyer at the other end, however, which is why a high trading volume is often considered a sign of a healthy market for buying and selling a stock. Prices are driven accordingly upward upon some sort of major announcement.
Quarantines and shutdowns from the novel coronavirus may have put a damper on the U.S. economy, but it can’t stop investors from trading certain stocks for profit.
We analyzed the top stocks recently to determine which have the highest trading volumes. Let’s take a look at which stock has the most volume, along with any other notable investments.
Top Volume: Sonnet Biotherapeutics Holdings
Although COVID-19 is the deadly disease of the day, cancer is by far a bigger problem for humanity. Experts estimate there will be 1.8 million new cancer diagnoses and 606,520 cancer-related deaths in 2020. Putting it behind only heart disease as the second-leading cause of death in the United States.
Sonnet Therapeutics [NASDAQ: SONN] is a Charlotte, NC-based biotechnology company founded in 2015 to fight cancer using a proprietary biologic drug development process.
The company became so successful, it eventually consumed Chanticleer Holdings’ common stock in a reverse merger in early 2020.
This occurred while the company was entering Phase 2 clinical trials for low-dose lead compounds used in two different neuropathy treatments: chemotherapy-induced peripheral neuropathy (SON-080) and diabetic peripheral neuropathy (SON-081).
It has several other treatments in various stages of the pipeline too. All of this led to a large trading volume, all while prices were sent tumbling for individual shares.
Like any pharmaceutical company, the success of Sonnet hinges on approval by the Food and Drug Administration (or another country’s equivalent). Without this, there’s no way to generate steady revenue to deliver profits, dividends, and market value. This puts Sonnet in an “all or nothing” bucket for investors. Let’s check out who’s behind them.
Runner Up: Nokia Corp (NYSE:NOK)
It’s unlikely you’ve owned a Nokia phone in the past decade. This one prolific smartphone company was made all but obsolete upon the release of the iPhone and Android’s smartphone competitors.
Its partnership with Microsoft [MSFT] to develop Windows phones proved catastrophic, and if you invested in 2010, you’re sitting at a nearly 40% loss in value by mid-2020. Of course, it’s not all bad news for the beleaguered Finnish brand – it’s gearing up for a 5G comeback while raising profit forecasts in the wake of the COVID-19 lockdowns.
And even though it’s operating at a loss compared to a decade ago, Nokia stock is strong in 2020, gaining over 25% in value since the start of the year. This is gaining investor interest, leading to a large volume of activity throughout the year as traders look to solidify market footholds.
2nd Runner Up: General Electric Company (NYSE:GE)
GE was founded in 1892 and is one of the largest companies in the world. It’s a component of the S&P 500 and has exposure in a wide variety of industries, including healthcare, aviation, capital and finance, additive manufacturing, and digital.
Of course, its global dominance has been faltering over the past decade, as profitability stalls. This led the company toward 30-year lows in 2020, as it liquidates holdings to find better footing.
If any company can pull itself back up, GE certainly has the resources. But its size doesn’t make it immune to the effects of a shrinking economy.
Unlike major banks or car manufacturers (both of which historically received government bailouts to survive), GE isn’t too big to fail. At this point, it has no other choice but to gain momentum or give up.
3rd Runner Up: Pinterest Inc (NYSE:PINS)
When you think of social media platforms, Facebook [FB], Snapchat, TikTok, and Twitter [TWTR] tend to rule the conversation. However, don’t overlook Pinterest, the highly visual social media platform that’s been showing consistent growth since it was founded in 2009.
In fact, Pinterest [PINS] has more than tripled in value since its 2020 lows in March, as its userbase grew 39% from the previous year to 416 million. It’s having no issues monetizing that audience either, posting a 4% revenue increase from 2019 at $272 million.
This has investors and advertisers alike flocking to the platform. It even managed to gain from the Facebook advertising boycott, as major brands with a lot of money sought new places to mine for users.
This has many analysts excited about this underdog social network’s chances in the 2020s, especially since its competitors Facebook and TikTok are facing major pushback from regulators. Before you go investing in one of these stocks, there’s one thing you need to know.
Warning: Volume and Price
One thing to remember about volume and price is they aren’t correlated, which is a common misunderstanding.
This myth comes from the idea of supply and demand (i.e., as demand increases, prices go down). This isn’t always the case, as the top four stocks by trading volume above illustrate. Some are at historic lows, while others are gaining, but each has a large trading volume.
Be sure to perform due diligence on the company’s financials and other factors to determine whether it is a worthwhile investment. This is the best way to verify if you should buy in.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.