Trade-Ideas: Alnylam Pharmaceuticals (ALNY) Is Today's "Barbarian At The Gate" Stock
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Alnylam Pharmaceuticals as such a stock due to the following factors:
- ALNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $101.0 million.
- ALNY has traded 375,814 shares today.
- ALNY traded in a range 201.5% of the normal price range with a price range of $11.56.
- ALNY traded above its daily resistance level (quality: 40 days, meaning that the stock is crossing a resistance level set by the last 40 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on ALNY:
Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes novel therapeutics based on RNA interference. Currently there are 7 analysts that rate Alnylam Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Alnylam Pharmaceuticals has been 954,600 shares per day over the past 30 days. Alnylam has a market cap of $7.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.63 and a short float of 6.7% with 3.25 days to cover. Shares are down 4% year-to-date as of the close of trading on Monday.
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Analysis:
rates Alnylam Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, 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 significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 62.9% when compared to the same quarter one year ago, falling from -$44.07 million to -$71.78 million.
- In its most recent trading session, ALNY 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. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has decreased to -$55.46 million or 18.94% when compared to the same quarter last year. Despite a decrease in cash flow of 18.94%, ALNYLAM PHARMACEUTICALS INC is still significantly exceeding the industry average of -79.03%.
- ALNYLAM PHARMACEUTICALS INC's earnings per share declined by 46.5% 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, ALNYLAM PHARMACEUTICALS INC reported poor results of -$5.14 versus -$1.43 in the prior year. This year, the market expects an improvement in earnings (-$3.23 versus -$5.14).
- 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 Biotechnology industry and the overall market, ALNYLAM PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Alnylam Pharmaceuticals Ratings Report.
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