Regulus Therapeutics (RGLS) Weak On High 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 or Stephanie Link.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Regulus Therapeutics as such a stock due to the following factors:
- RGLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
- RGLS has traded 123,139 shares today.
- RGLS is trading at 3.15 times the normal volume for the stock at this time of day.
- RGLS is trading at a new low 4.02% 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 RGLS:
Regulus Therapeutics Inc., a biopharmaceutical company, focuses on the discovery and development of drugs that target microRNAs for the treatment of various diseases in the United States. Currently there are 4 analysts that rate Regulus Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Regulus Therapeutics has been 707,700 shares per day over the past 30 days. Regulus has a market cap of $936.6 million and is part of the health care sector and drugs industry. Shares are up 31.7% year-to-date as of the close of trading on Thursday.
Analysis:
rates Regulus Therapeutics 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 when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 1050.4% when compared to the same quarter one year ago, falling from -$1.93 million to -$22.17 million.
- 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, REGULUS THERAPEUTICS 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 -$11.66 million or 25.15% 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.
- REGULUS THERAPEUTICS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, REGULUS THERAPEUTICS INC reported poor results of -$1.32 versus -$0.58 in the prior year. This year, the market expects an improvement in earnings (-$0.98 versus -$1.32).
- The revenue fell significantly faster than the industry average of 36.4%. Since the same quarter one year prior, revenues fell by 22.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Regulus Therapeutics Ratings Report.
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