Bluebird Bio (BLUE) 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 bluebird bio as such a stock due to the following factors:
- BLUE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $67.7 million.
- BLUE has traded 70,982 shares today.
- BLUE is trading at 2.07 times the normal volume for the stock at this time of day.
- BLUE is trading at a new low 3.04% 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 BLUE:
bluebird bio, Inc., a clinical-stage biotechnology company, focuses on developing gene therapies for severe genetic and orphan diseases. Currently there are 7 analysts that rate bluebird bio a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for bluebird bio has been 979,000 shares per day over the past 30 days. Bluebird bio has a market cap of $3.3 billion and is part of the health care sector and drugs industry. Shares are up 22.4% year-to-date as of the close of trading on Thursday.
Analysis:
rates bluebird bio as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- BLUEBIRD BIO INC 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. For the next year, the market is expecting a contraction of 246.3% in earnings (-$2.77 versus -$0.80).
- 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 178.6% when compared to the same quarter one year ago, falling from -$6.11 million to -$17.03 million.
- Net operating cash flow has significantly decreased to -$20.77 million or 134.43% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The revenue fell significantly faster than the industry average of 36.4%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to other companies in the Biotechnology industry and the overall market, BLUEBIRD BIO INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full bluebird bio Ratings Report.
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