Trade-Ideas LLC identified

Immunomedics

(

IMMU

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

  • IMMU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
  • IMMU has traded 884,455 shares today.
  • IMMU is trading at 9.69 times the normal volume for the stock at this time of day.
  • IMMU is trading at a new high 6.01% 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 IMMU:

Immunomedics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of monoclonal antibody-based products for the targeted treatment of cancer, autoimmune, and other diseases. Currently there are 2 analysts that rate Immunomedics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Immunomedics has been 1.2 million shares per day over the past 30 days. Immunomedics has a market cap of $458.9 million and is part of the health care sector and drugs industry. The stock has a beta of 1.26 and a short float of 26.9% with 9.95 days to cover. Shares are up 62.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Immunomedics as a

sell

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

Highlights from the ratings report include:

  • IMMUNOMEDICS INC's earnings per share declined by 15.4% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, IMMUNOMEDICS INC reported poor results of -$0.51 versus -$0.41 in the prior year. For the next year, the market is expecting a contraction of 11.8% in earnings (-$0.57 versus -$0.51).
  • 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 19.1% when compared to the same quarter one year ago, dropping from -$11.76 million to -$14.00 million.
  • Net operating cash flow has decreased to -$14.09 million or 30.43% 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.
  • The revenue fell significantly faster than the industry average of 17.9%. Since the same quarter one year prior, revenues fell by 23.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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