Theravance (THRX) Strong On High Relative 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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Theravance as such a stock due to the following factors:
- THRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.3 million.
- THRX has traded 245,169 shares today.
- THRX is trading at 5.26 times the normal volume for the stock at this time of day.
- THRX is trading at a new high 3.32% 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 THRX:
Theravance, Inc., a royalty management company, is focused on developing respiratory products. The stock currently has a dividend yield of 5%. Currently there is 1 analyst that rates Theravance a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Theravance has been 1.0 million shares per day over the past 30 days. Theravance has a market cap of $2.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.60 and a short float of 55.4% with 23.26 days to cover. Shares are up 38.5% year-to-date as of the close of trading on Friday.
Analysis:
rates Theravance as a
. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The gross profit margin for THERAVANCE INC is currently extremely low, coming in at 1.79%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, THRX's net profit margin of -218.76% significantly underperformed when compared to the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.07%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 75.00% compared to 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.
- THERAVANCE 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 year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, THERAVANCE INC reported poor results of -$0.66 versus -$0.30 in the prior year. This year, the market expects an improvement in earnings (-$0.14 versus -$0.66).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 68.1% when compared to the same quarter one year prior, rising from -$49.93 million to -$15.93 million.
- THRX's very impressive revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues leaped by 394.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- You can view the full Theravance Ratings Report.
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