Akorn (AKRX) Stock: 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 or Stephanie Link.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Akorn as such a stock due to the following factors:
- AKRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $121.4 million
- AKRX has traded 1.8 million shares today
- AKRX is trading at 18.33 times the normal volume for the stock at this time of day
- AKRX is trading at a new low 15.00771365045699923257416230626404285430908203125 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 AKRX:
Akorn, Inc. manufactures and markets diagnostic and therapeutic ophthalmic pharmaceuticals, niche hospital drugs, and injectable pharmaceuticals in the United States and internationally. AKRX has a PE ratio of 42.96000000000000085265128291212022304534912109375. Currently there are nine analysts that rate Akorn a buy, no analysts rate it a sell, and two rate it a hold.
The average volume for Akorn has been 1.6 million shares per day over the past 30 days. Akorn has a market cap of $5.37 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.53 and a short float of 16% with 4.17 days to cover. Shares are up 37.6% year-to-date as of the close of trading on Monday.
Analysis:
rates Akorn as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- AKRX's very impressive revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues leaped by 168.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for AKORN INC is rather high; currently it is at 62.81%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.02% is above that of the industry average.
- Net operating cash flow has increased to $16.65 million or 11.61% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.57%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 105.3% when compared to the same quarter one year prior, rising from $16.68 million to $34.23 million.
- Powered by its strong earnings growth of 107.14% and other important driving factors, this stock has surged by 112.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Akorn Ratings Report
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