Trade-Ideas LLC identified

Ascendis Pharma A/S

(

ASND

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ascendis Pharma A/S as such a stock due to the following factors:

  • ASND has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.5 million.
  • ASND has traded 1.0 million shares today.
  • ASND is trading at 208.38 times the normal volume for the stock at this time of day.
  • ASND is trading at a new low 3.33% 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 ASND:

Ascendis Pharma A/S, a clinical stage biopharmaceutical company, develops various prodrug therapies to treat unmet medical needs. Currently there are 3 analysts that rate Ascendis Pharma A/S a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Ascendis Pharma A/S has been 94,200 shares per day over the past 30 days. Ascendis Pharma A/S has a market cap of $348.8 million and is part of the health care sector and drugs industry. Shares are down 29.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ascendis Pharma A/S as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • ASCENDIS PHARMA AS -ADR 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, ASCENDIS PHARMA AS -ADR reported poor results of -$1.49 versus -$0.26 in the prior year. For the next year, the market is expecting a contraction of 134.6% in earnings (-$3.50 versus -$1.49).
  • 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 1630.5% when compared to the same quarter one year ago, falling from $1.53 million to -$23.37 million.
  • Net operating cash flow has significantly decreased to -$16.95 million or 121.20% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of ASCENDIS PHARMA AS -ADR has not done very well: it is down 20.58% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The revenue fell significantly faster than the industry average of 19.5%. Since the same quarter one year prior, revenues fell by 35.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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