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 $83.7 million.
  • ALNY has traded 277,317 shares today.
  • ALNY is trading at 3.86 times the normal volume for the stock at this time of day.
  • ALNY is trading at a new low 3.48% 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:

TheStreet Recommends

Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes novel therapeutics based on RNA interference. Currently there are 8 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 743,200 shares per day over the past 30 days. Alnylam has a market cap of $8.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.01 and a short float of 7.1% with 4.70 days to cover. Shares are up 12.4% year-to-date as of the close of trading on Friday.

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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 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.
  • Net operating cash flow has decreased to -$55.46 million or 18.94% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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 (-$3.25 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.
  • ALNY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 15.23, which clearly demonstrates the ability to cover short-term cash needs.

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