Trade-Ideas LLC identified

Biogen

(

BIIB

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

  • BIIB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $665.9 million.
  • BIIB has traded 697,898 shares today.
  • BIIB is trading at 2.89 times the normal volume for the stock at this time of day.
  • BIIB is trading at a new low 4.00% 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 BIIB with the Ticky from Trade-Ideas. See the FREE profile for BIIB NOW at Trade-Ideas

More details on BIIB:

TheStreet Recommends

Biogen Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurological, autoimmune, and hematologic disorders in the United States and internationally. BIIB has a PE ratio of 17. Currently there are 14 analysts that rate Biogen a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Biogen has been 1.8 million shares per day over the past 30 days. Biogen has a market cap of $57.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.36 and a short float of 1.1% with 1.12 days to cover. Shares are down 15.2% year-to-date as of the close of trading on Wednesday.

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 Biogen as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • BIOGEN INC has improved earnings per share by 14.6% 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 two years. We feel that this trend should continue. During the past fiscal year, BIOGEN INC increased its bottom line by earning $12.39 versus $7.82 in the prior year. This year, the market expects an improvement in earnings ($16.57 versus $12.39).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 12.7% when compared to the same quarter one year prior, going from $856.86 million to $965.62 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 10.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 2.84, which clearly demonstrates the ability to cover short-term cash needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Biotechnology industry and the overall market, BIOGEN INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

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.