Organovo Holdings (ONVO) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Organovo Holdings as such a stock due to the following factors:
- ONVO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
- ONVO has traded 138,468 shares today.
- ONVO is trading at 2.29 times the normal volume for the stock at this time of day.
- ONVO is trading at a new high 4.13% 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 ONVO:
Organovo Holdings, Inc., a development-stage company, focuses on developing and commercializing functional human tissues that could be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. Currently there are 2 analysts that rate Organovo Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Organovo Holdings has been 1.4 million shares per day over the past 30 days. Organovo has a market cap of $278.2 million and is part of the health care sector and health services industry. The stock has a beta of 3.54 and a short float of 24% with 21.83 days to cover. Shares are down 56.5% year-to-date as of the close of trading on Monday.
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Analysis:
rates Organovo Holdings 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:
- ORGANOVO HOLDINGS INC's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, ORGANOVO HOLDINGS INC reported poor results of -$0.38 versus -$0.35 in the prior year. For the next year, the market is expecting a contraction of 10.5% in earnings (-$0.42 versus -$0.38).
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has significantly decreased by 32.0% when compared to the same quarter one year ago, falling from -$6.43 million to -$8.49 million.
- Net operating cash flow has significantly decreased to -$6.30 million or 87.07% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ORGANOVO HOLDINGS INC has marginally lower results.
- Looking at the price performance of ONVO's shares over the past 12 months, there is not much good news to report: the stock is down 50.97%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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'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, ORGANOVO HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Organovo Holdings Ratings Report.
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