Epizyme (EPZM) 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 Epizyme as such a stock due to the following factors:
- EPZM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
- EPZM has traded 87,218 shares today.
- EPZM is trading at 13.78 times the normal volume for the stock at this time of day.
- EPZM is trading at a new low 11.18% 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 EPZM:
Epizyme, Inc., a clinical stage biopharmaceutical company, discovers and develops personalized therapeutics for patients with genetically defined cancers. EPZM has a PE ratio of 548.5. Currently there are 5 analysts that rate Epizyme a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Epizyme has been 265,500 shares per day over the past 30 days. Epizyme has a market cap of $749.5 million and is part of the health care sector and drugs industry. Shares are up 17.5% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Epizyme 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, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- EPIZYME 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 958.8% in earnings (-$1.80 versus -$0.17).
- 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 103.0% when compared to the same quarter one year ago, falling from -$9.70 million to -$19.70 million.
- Net operating cash flow has significantly decreased to -$19.06 million or 128.47% 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 share price of EPIZYME INC has not done very well: it is down 17.40% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The revenue fell significantly faster than the industry average of 35.5%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Epizyme Ratings Report.
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