Trade-Ideas LLC identified

Alnylam Pharmaceuticals

(

ALNY

) as a weak on high relative volume 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 $73.1 million.
  • ALNY has traded 107,352 shares today.
  • ALNY is trading at 3.85 times the normal volume for the stock at this time of day.
  • ALNY is trading at a new low 4.12% 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.

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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 6 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 1.0 million shares per day over the past 30 days. Alnylam has a market cap of $5.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.25 and a short float of 10.1% with 4.14 days to cover. Shares are down 36.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alnylam Pharmaceuticals as a

sell

. 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 324.1% when compared to the same quarter one year ago, falling from -$21.39 million to -$90.72 million.
  • Net operating cash flow has decreased to -$53.06 million or 44.84% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ALNYLAM PHARMACEUTICALS INC has marginally lower results.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.72%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 282.14% 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.
  • ALNYLAM PHARMACEUTICALS 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. 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, ALNYLAM PHARMACEUTICALS INC continued to lose money by earning -$3.45 versus -$5.14 in the prior year. For the next year, the market is expecting a contraction of 31.0% in earnings (-$4.52 versus -$3.45).
  • 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.

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