Trade-Ideas LLC identified

FibroGen

(

FGEN

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

  • FGEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.2 million.
  • FGEN has traded 148,981 shares today.
  • FGEN is trading at 2.71 times the normal volume for the stock at this time of day.
  • FGEN is trading at a new low 3.01% 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 FGEN:

FibroGen, Inc., a research-based biopharmaceutical company, discovers, develops, and commercializes therapeutic agents to treat serious unmet medical needs. Currently there are 3 analysts that rate FibroGen a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for FibroGen has been 500,500 shares per day over the past 30 days. FibroGen has a market cap of $1.3 billion and is part of the health care sector and drugs industry. Shares are down 30.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FibroGen as a

sell

. Among the areas we feel are negative, one of the most important has been generally deteriorating net income.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 14.1% when compared to the same quarter one year ago, dropping from -$39.54 million to -$45.10 million.
  • FIBROGEN INC's earnings per share declined by 5.7% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings (-$1.07 versus -$1.59).
  • Looking at the price performance of FGEN's shares over the past 12 months, there is not much good news to report: the stock is down 35.74%, 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.
  • Compared to other companies in the Biotechnology industry and the overall market, FIBROGEN INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has fallen to -$38.13 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.

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