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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 $7.9 million.
  • IDRA has traded 256,406 shares today.
  • IDRA is trading at 3.53 times the normal volume for the stock at this time of day.
  • IDRA is trading at a new low 5.18% 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 1.6 million shares per day over the past 30 days. Idera has a market cap of $411.1 million and is part of the health care sector and drugs industry. The stock has a beta of 2.43 and a short float of 34.6% with 13.46 days to cover. Shares are down 14.3% year-to-date as of the close of trading on Friday.

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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 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 53.1% when compared to the same quarter one year ago, falling from -$8.31 million to -$12.72 million.
  • Net operating cash flow has significantly decreased to -$9.86 million or 60.19% 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 return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.
  • IDRA, with its very weak revenue results, has greatly underperformed against the industry average of 8.8%. Since the same quarter one year prior, revenues plummeted by 86.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • IDERA PHARMACEUTICALS INC's earnings per share declined by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IDERA PHARMACEUTICALS INC continued to lose money by earning -$0.47 versus -$0.51 in the prior year. This year, the market expects an improvement in earnings (-$0.46 versus -$0.47).

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