Trade-Ideas: Alkermes (ALKS) Is Today's Strong On High Relative Volume Stock
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 Alkermes as such a stock due to the following factors:
- ALKS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $154.6 million.
- ALKS has traded 312,819 shares today.
- ALKS is trading at 4.92 times the normal volume for the stock at this time of day.
- ALKS is trading at a new high 5.00% 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 ALKS:
Alkermes Public Limited Company, an integrated biopharmaceutical company, develops medicines that enhance patient outcomes. Currently there are 5 analysts that rate Alkermes a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Alkermes has been 1.4 million shares per day over the past 30 days. Alkermes has a market cap of $10.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.31 and a short float of 5.8% with 2.45 days to cover. Shares are up 20.9% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Alkermes 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:
- ALKERMES PLC 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 338.5% in earnings (-$0.31 versus $0.13).
- 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 414.8% when compared to the same quarter one year ago, falling from -$7.76 million to -$39.96 million.
- Compared to other companies in the Biotechnology industry and the overall market, ALKERMES PLC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ALKERMES PLC is currently very high, coming in at 76.66%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -24.97% is in-line with the industry average.
- Compared to its closing price of one year ago, ALKS's share price has jumped by 46.84%, 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 Alkermes Ratings Report.
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