Agios Pharmaceuticals (AGIO) Weak On High Volume Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Agios Pharmaceuticals as such a stock due to the following factors:
- AGIO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.4 million.
- AGIO has traded 80,232 shares today.
- AGIO is trading at 3.01 times the normal volume for the stock at this time of day.
- AGIO is trading at a new low 5.21% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 AGIO:
Agios Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics in the field of cancer metabolism and rare genetic disorders of metabolism in the United States. Currently there are 3 analysts that rate Agios Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Agios Pharmaceuticals has been 696,800 shares per day over the past 30 days. Agios has a market cap of $4.1 billion and is part of the health care sector and drugs industry. Shares are down 3.6% year-to-date as of the close of trading on Friday.
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Analysis:
rates Agios Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.
Highlights from the ratings report include:
- AGIOS PHARMACEUTICALS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, AGIOS PHARMACEUTICALS reported poor results of -$1.59 versus -$1.06 in the prior year. For the next year, the market is expecting a contraction of 89.9% in earnings (-$3.02 versus -$1.59).
- 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 Biotechnology industry. The net income has significantly decreased by 115.3% when compared to the same quarter one year ago, falling from -$12.38 million to -$26.66 million.
- Compared to other companies in the Biotechnology industry and the overall market, AGIOS PHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has increased to -$7.78 million or 42.90% when compared to the same quarter last year. Despite an increase in cash flow, AGIOS PHARMACEUTICALS's average is still marginally south of the industry average growth rate of 49.09%.
- Compared to its closing price of one year ago, AGIO's share price has jumped by 151.60%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in AGIO do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full Agios Pharmaceuticals Ratings Report.
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