Trade-Ideas LLC identified

AcelRx Pharmaceuticals

(

ACRX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified AcelRx Pharmaceuticals as such a stock due to the following factors:

  • ACRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.1 million.
  • ACRX has traded 198,321 shares today.
  • ACRX is trading at 2.55 times the normal volume for the stock at this time of day.
  • ACRX is trading at a new high 4.09% 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 ACRX:

AcelRx Pharmaceuticals, Inc., a specialty pharmaceutical company, develops and commercializes therapies for the treatment of acute pain. Currently there are 3 analysts that rate AcelRx Pharmaceuticals a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for AcelRx Pharmaceuticals has been 555,600 shares per day over the past 30 days. AcelRx has a market cap of $208.4 million and is part of the health care sector and health services industry. The stock has a beta of 3.02 and a short float of 18.9% with 5.22 days to cover. Shares are down 27.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AcelRx Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, ACELRX PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ACRX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.74%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • ACELRX PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ACELRX PHARMACEUTICALS INC reported poor results of -$0.97 versus -$0.68 in the prior year. This year, the market expects an improvement in earnings (-$0.53 versus -$0.97).
  • 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 655.4% when compared to the same quarter one year prior, rising from $0.67 million to $5.07 million.
  • 46.05% is the gross profit margin for ACELRX PHARMACEUTICALS INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 32.85% is above that of the industry average.

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