Orexigen Therapeutics (OREX) Weak On High Volume Today
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Orexigen Therapeutics as such a stock due to the following factors:
- OREX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.5 million.
- OREX has traded 453,466 shares today.
- OREX is trading at 3.66 times the normal volume for the stock at this time of day.
- OREX is trading at a new low 11.25% 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 OREX:
Orexigen Therapeutics, Inc., a biopharmaceutical company, focuses on the development of pharmaceutical products in the United States. The company offers Contrave for the treatment of obesity. Currently there are 5 analysts that rate Orexigen Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Orexigen Therapeutics has been 3.3 million shares per day over the past 30 days. Orexigen has a market cap of $412.5 million and is part of the health care sector and drugs industry. The stock has a beta of 2.87 and a short float of 34% with 11.47 days to cover. Shares are down 47.2% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Orexigen Therapeutics as a
. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- OREX'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 26.11%, 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.
- OREXIGEN THERAPEUTICS INC has improved earnings per share by 14.3% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, OREXIGEN THERAPEUTICS INC continued to lose money by earning -$0.35 versus -$0.80 in the prior year. For the next year, the market is expecting a contraction of 88.6% in earnings (-$0.66 versus -$0.35).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 8.2% when compared to the same quarter one year prior, going from -$24.51 million to -$22.50 million.
- Net operating cash flow has increased to -$14.53 million or 33.70% when compared to the same quarter last year. In addition, OREXIGEN THERAPEUTICS INC has also vastly surpassed the industry average cash flow growth rate of -79.03%.
- OREX's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 506.1%. 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 Orexigen Therapeutics Ratings Report.
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