Trade-Ideas LLC identified

Array BioPharma

(

ARRY

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

  • ARRY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.4 million.
  • ARRY has traded 579,206 shares today.
  • ARRY is trading at 3.34 times the normal volume for the stock at this time of day.
  • ARRY is trading at a new high 3.31% 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 ARRY:

TST Recommends

Array BioPharma Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule drugs to treat patients with cancer in North America, Europe, and the Asia Pacific. ARRY has a PE ratio of 24. Currently there are 7 analysts that rate Array BioPharma a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Array BioPharma has been 3.0 million shares per day over the past 30 days. Array BioPharma has a market cap of $442.1 million and is part of the health care sector and drugs industry. The stock has a beta of 1.42 and a short float of 18.7% with 7.81 days to cover. Shares are down 28.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Array BioPharma as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, weak operating cash flow and generally high debt management risk.

Highlights from the ratings report include:

  • ARRY'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 32.07%, 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. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • Net operating cash flow has declined marginally to -$19.20 million or 2.31% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ARRAY BIOPHARMA INC has marginally lower results.
  • The debt-to-equity ratio is very high at 4.51 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.51, which shows the ability to cover short-term cash needs.
  • ARRAY BIOPHARMA INC has improved earnings per share by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ARRAY BIOPHARMA INC turned its bottom line around by earning $0.01 versus -$0.68 in the prior year. For the next year, the market is expecting a contraction of 4800.0% in earnings (-$0.47 versus $0.01).
  • The gross profit margin for ARRAY BIOPHARMA INC is rather high; currently it is at 64.57%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -129.57% is in-line with the industry average.

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