Today's Weak On High Volume Stock: Second Sight Medical Products (EYES)

Trade-Ideas LLC identified Second Sight Medical Products (EYES) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Second Sight Medical Products

(

EYES

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Second Sight Medical Products as such a stock due to the following factors:

  • EYES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • EYES has traded 218,014 shares today.
  • EYES is trading at 2.91 times the normal volume for the stock at this time of day.
  • EYES is trading at a new low 3.41% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in EYES with the Ticky from Trade-Ideas. See the FREE profile for EYES NOW at Trade-Ideas

More details on EYES:

Second Sight Medical Products, Inc. develops, manufactures, and markets implantable prosthetic devices to restore functional vision to blind patients in the United States, Canada, Italy, France, Germany, and internationally. EYES has a PE ratio of 6. Currently there is 1 analyst that rates Second Sight Medical Products a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Second Sight Medical Products has been 394,200 shares per day over the past 30 days. Second Sight Medical has a market cap of $121.8 million and is part of the health care sector and health services industry. The stock has a beta of 2.89 and a short float of 26.4% with 5.22 days to cover. Shares are down 30.4% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Second Sight Medical Products as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself 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 underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Health Care Equipment & Supplies industry average. The net income has decreased by 17.4% when compared to the same quarter one year ago, dropping from -$4.96 million to -$5.82 million.
  • The gross profit margin for SECOND SIGHT MEDICAL PRODS is rather low; currently it is at 22.79%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -552.32% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$6.04 million or 20.05% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, SECOND SIGHT MEDICAL PRODS has marginally lower results.
  • Looking at the price performance of EYES's shares over the past 12 months, there is not much good news to report: the stock is down 73.03%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • SECOND SIGHT MEDICAL PRODS's earnings per share declined by 14.3% 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, SECOND SIGHT MEDICAL PRODS continued to lose money by earning -$0.56 versus -$0.61 in the prior year. For the next year, the market is expecting a contraction of 16.1% in earnings (-$0.65 versus -$0.56).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...