Cempra (CEMP) Strong On High Relative Volume Today
Trade-Ideas LLC identified Cempra ( CEMP) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cempra as such a stock due to the following factors:
- CEMP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.5 million.
- CEMP has traded 293,407 shares today.
- CEMP is trading at 4.92 times the normal volume for the stock at this time of day.
- CEMP is trading at a new high 8.09% 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 CEMP: Cempra, Inc., a clinical-stage pharmaceutical company, focuses on developing antibiotics to meet medical needs in the treatment of bacterial infectious diseases in North America. Currently there are 8 analysts that rate Cempra a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Cempra has been 732,800 shares per day over the past 30 days. Cempra has a market cap of $862.2 million and is part of the health care sector and drugs industry. The stock has a beta of 1.53 and a short float of 24.8% with 18.51 days to cover. Shares are down 44.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Cempra as a
. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to -$28.34 million or 114.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- CEMPRA INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, CEMPRA INC reported poor results of -$2.09 versus -$1.80 in the prior year. For the next year, the market is expecting a contraction of 23.4% in earnings (-$2.58 versus -$2.09).
- The change in net income from the same quarter one year ago has exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income has significantly decreased by 25.2% when compared to the same quarter one year ago, falling from -$16.90 million to -$21.16 million.
- Looking at the price performance of CEMP's shares over the past 12 months, there is not much good news to report: the stock is down 48.74%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- 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 Pharmaceuticals industry and the overall market, CEMPRA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Cempra Ratings Report.
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