Array BioPharma (ARRY): Today's Weak On High Volume Stock - TheStreet

Trade-Ideas LLC identified

Array BioPharma

(

ARRY

) as a weak 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 $13.1 million.
  • ARRY has traded 843,156 shares today.
  • ARRY is trading at 3.08 times the normal volume for the stock at this time of day.
  • ARRY is trading at a new low 3.22% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ARRY with the Ticky from Trade-Ideas. See the FREE profile for ARRY NOW at Trade-Ideas

More details on ARRY:

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 31. 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 2.1 million shares per day over the past 30 days. Array BioPharma has a market cap of $570.5 million and is part of the health care sector and drugs industry. The stock has a beta of 1.45 and a short float of 22.3% with 8.29 days to cover. Shares are down 15.4% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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 weak operating cash flow and generally high debt management risk.

Highlights from the ratings report include:

  • 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.
  • After a year of stock price fluctuations, the net result is that ARRY's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • 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 5900.0% in earnings (-$0.58 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.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.