Immunogen (IMGN) Strong On High Relative 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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Immunogen as such a stock due to the following factors:
- IMGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.5 million.
- IMGN has traded 219,289 shares today.
- IMGN is trading at 4.44 times the normal volume for the stock at this time of day.
- IMGN is trading at a new high 3.03% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 IMGN:
ImmunoGen, Inc., a biotechnology company, develops targeted anticancer therapeutics. It develops its products using its antibody-drug conjugates technology. The company offers Kadcyla, an antibody-drug conjugate for the treatment of HER2-positive metastatic breast cancer. Currently there are 3 analysts that rate Immunogen a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for Immunogen has been 1.6 million shares per day over the past 30 days. Immunogen has a market cap of $656.6 million and is part of the health care sector and drugs industry. The stock has a beta of 1.27 and a short float of 18.7% with 16.98 days to cover. Shares are up 29.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Immunogen as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.
Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, IMMUNOGEN INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$15.48 million or 895.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- IMGN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 51.74%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The gross profit margin for IMMUNOGEN INC is currently lower than what is desirable, coming in at 31.49%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 28.22% trails the industry average.
- IMGN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.61, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full Immunogen Ratings Report.
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