Strong On High Volume: Ampio Pharmaceuticals (AMPE)
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.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ampio Pharmaceuticals as such a stock due to the following factors:
- AMPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.1 million.
- AMPE has traded 158,921 shares today.
- AMPE is trading at 3.31 times the normal volume for the stock at this time of day.
- AMPE is trading at a new high 4.06% 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 AMPE:
Ampio Pharmaceuticals, Inc., a development stage biopharmaceutical company, develops therapies for the treatment of prevalent inflammatory conditions in the United States. Currently there is 1 analyst that rates Ampio Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Ampio Pharmaceuticals has been 782,200 shares per day over the past 30 days. Ampio has a market cap of $386.7 million and is part of the health care sector and drugs industry. The stock has a beta of 0.38 and a short float of 21% with 7.28 days to cover. Shares are up 137% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Ampio Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, deteriorating net income and feeble growth in its earnings per share.
Highlights from the ratings report include:
- Net operating cash flow has decreased to -$5.78 million or 15.38% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, AMPIO PHARMACEUTICALS INC has marginally lower results.
- The change in net income from the same quarter one year ago has exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income has significantly decreased by 35.0% when compared to the same quarter one year ago, falling from -$7.34 million to -$9.91 million.
- AMPIO PHARMACEUTICALS INC's earnings per share declined by 5.5% in the most recent quarter compared to 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, AMPIO PHARMACEUTICALS INC reported poor results of -$0.77 versus -$0.62 in the prior year. This year, the market expects an improvement in earnings (-$0.62 versus -$0.77).
- In its most recent trading session, AMPE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- 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 Pharmaceuticals industry and the overall market, AMPIO PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Ampio Pharmaceuticals Ratings Report.
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