Trade-Ideas LLC identified

Eagle Pharmaceuticals

(

EGRX

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

  • EGRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.8 million.
  • EGRX has traded 125,376 shares today.
  • EGRX is trading at 8.29 times the normal volume for the stock at this time of day.
  • EGRX is trading at a new low 9.02% 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 EGRX:

Eagle Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing injectable products primarily in the critical care and oncology areas in the United States. Currently there are 4 analysts that rate Eagle Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Eagle Pharmaceuticals has been 453,900 shares per day over the past 30 days. Eagle has a market cap of $732.1 million and is part of the health care sector and drugs industry. Shares are down 49.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Eagle Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:

  • 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 104.5% when compared to the same quarter one year ago, falling from $19.70 million to -$0.90 million.
  • Net operating cash flow has significantly decreased to $3.11 million or 87.97% 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 gross profit margin for EAGLE PHARMACEUTICALS INC is rather high; currently it is at 51.52%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, EGRX's net profit margin of -3.02% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 19.4%. Since the same quarter one year prior, revenues fell by 18.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • EAGLE PHARMACEUTICALS INC 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. This year, the market expects an improvement in earnings ($4.33 versus $0.20).

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