Organovo Holdings (ONVO) Stock: 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 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 $6.0 million.
- ONVO has traded 493,135 shares today.
- ONVO is trading at 2.13 times the normal volume for the stock at this time of day.
- ONVO is trading at a new low 4.06% 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 ONVO:
Organovo Holdings Inc, an early commercial stage co, 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 none rate it a hold.
The average volume for Organovo Holdings has been 756,500 shares per day over the past 30 days. Organovo has a market cap of $366.8 million and is part of the health care sector and health services industry. The stock has a beta of 2.72 and a short float of 15.1% with 7.02 days to cover. Shares are up 58.2% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Organovo Holdings as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income 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 has decreased by 7.4% when compared to the same quarter one year ago, dropping from -$7.80 million to -$8.37 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
- Net operating cash flow has decreased to -$7.53 million or 34.26% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- ORGANOVO HOLDINGS INC has improved earnings per share by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ORGANOVO HOLDINGS INC reported poor results of -$0.42 versus -$0.38 in the prior year. For the next year, the market is expecting a contraction of 1.2% in earnings (-$0.43 versus -$0.42).
- After a year of stock price fluctuations, the net result is that ONVO's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.
- You can view the full Organovo Holdings Ratings Report.
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