Inovio Pharmaceuticals (INO) Is Today's Strong On High Volume Stock
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 Inovio Pharmaceuticals as such a stock due to the following factors:
- INO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
- INO has traded 162,672 shares today.
- INO is trading at 4.72 times the normal volume for the stock at this time of day.
- INO is trading at a new high 7.10% 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 INO:
Inovio Pharmaceuticals, Inc., together with its subsidiaries, discovers, develops, and develops synthetic vaccines and immune therapies focusing on cancers and infectious diseases. Currently there are 6 analysts that rate Inovio Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Inovio Pharmaceuticals has been 637,300 shares per day over the past 30 days. Inovio has a market cap of $442.3 million and is part of the health care sector and drugs industry. The stock has a beta of 3.81 and a short float of 20.9% with 23.66 days to cover. Shares are down 23.3% year-to-date as of the close of trading on Friday.
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Analysis:
rates Inovio Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has decreased to -$8.04 million or 40.98% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- INO'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 48.01%, 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 company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 76.8% when compared to the same quarter one year prior, rising from -$30.88 million to -$7.18 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, INOVIO PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- INO, with its very weak revenue results, has greatly underperformed against the industry average of 36.4%. Since the same quarter one year prior, revenues plummeted by 80.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Inovio Pharmaceuticals Ratings Report.
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