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Trade-Ideas LLC identified

Idera Pharmaceuticals

(

IDRA

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

  • IDRA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.6 million.
  • IDRA has traded 392,755 shares today.
  • IDRA is trading at 2.04 times the normal volume for the stock at this time of day.
  • IDRA is trading at a new low 6.07% 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 IDRA:

TheStreet Recommends

Idera Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of novel therapeutics for oncology and rare diseases in the United States. Currently there are 3 analysts that rate Idera Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Idera Pharmaceuticals has been 1.5 million shares per day over the past 30 days. Idera has a market cap of $511.3 million and is part of the health care sector and drugs industry. The stock has a beta of 1.11 and a short float of 20.4% with 8.16 days to cover. Shares are down 3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Idera Pharmaceuticals as a

sell

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

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 20.2% when compared to the same quarter one year ago, dropping from -$9.46 million to -$11.37 million.
  • Net operating cash flow has decreased to -$11.76 million or 46.04% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • IDRA has underperformed the S&P 500 Index, declining 10.08% from its price level of one year ago. 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 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 Biotechnology industry and the overall market, IDERA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The revenue fell significantly faster than the industry average of 13.4%. Since the same quarter one year prior, revenues fell by 33.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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