Strong On High Relative Volume: Intrexon (XON)
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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Intrexon as such a stock due to the following factors:
- XON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.2 million.
- XON has traded 612,744 shares today.
- XON is trading at 5.86 times the normal volume for the stock at this time of day.
- XON is trading at a new high 10.02% 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 XON:
Intrexon Corporation, a biotechnology company, operates in the synthetic biology field. Synthetic biology is a discipline that applies engineering principles to biological systems. Currently there are 2 analysts that rate Intrexon a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Intrexon has been 1.2 million shares per day over the past 30 days. Intrexon has a market cap of $4.1 billion and is part of the health care sector and drugs industry. Shares are up 46.1% year-to-date as of the close of trading on Monday.
Analysis:
rates Intrexon as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.
Highlights from the ratings report include:
- INTREXON CORP 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. For the next year, the market is expecting a contraction of 3833.3% in earnings (-$1.18 versus -$0.03).
- 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 440.2% when compared to the same quarter one year ago, falling from $15.50 million to -$52.73 million.
- Compared to other companies in the Biotechnology industry and the overall market, INTREXON CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 58.11% to -$6.64 million when compared to the same quarter last year. In addition, INTREXON CORP has also vastly surpassed the industry average cash flow growth rate of 2.90%.
- Compared to its closing price of one year ago, XON's share price has jumped by 62.39%, exceeding the performance of the broader market during that same time frame. Despite the fact that the stock's value has already enjoyed nice gains in the past year, we feel that the risks surrounding an investment in this stock outweigh any potential future returns.
- You can view the full Intrexon Ratings Report.
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