Corcept Therapeutics (CORT) Is 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 Corcept Therapeutics as such a stock due to the following factors:
- CORT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
- CORT has traded 190,019 shares today.
- CORT is trading at 23.87 times the normal volume for the stock at this time of day.
- CORT is trading at a new low 4.10% 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 CORT:
Corcept Therapeutics Incorporated, a pharmaceutical company, is engaged in the discovery, development, and commercialization of drugs for the treatment of metabolic, psychiatric, and oncologic disorders in the United States. Currently there is 1 analyst that rates Corcept Therapeutics a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Corcept Therapeutics has been 152,100 shares per day over the past 30 days. Corcept has a market cap of $529.3 million and is part of the health care sector and drugs industry. The stock has a beta of 2.48 and a short float of 6.3% with 6.69 days to cover. Shares are up 95% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Corcept Therapeutics as a
. The area that we feel has been the company's primary weakness has been its relatively poor performance when compared with the S&P 500 during the past year.
Highlights from the ratings report include:
- In its most recent trading session, CORT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- The gross profit margin for CORCEPT THERAPEUTICS INC is currently very high, coming in at 97.14%. Regardless of CORT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CORT's net profit margin of -43.21% significantly underperformed when compared to the industry average.
- CORCEPT THERAPEUTICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CORCEPT THERAPEUTICS INC continued to lose money by earning -$0.31 versus -$0.46 in the prior year. This year, the market expects an improvement in earnings (-$0.09 versus -$0.31).
- 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 65.0% when compared to the same quarter one year prior, rising from -$11.12 million to -$3.90 million.
- CORT's very impressive revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues leaped by 119.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- You can view the full Corcept Therapeutics Ratings Report.
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