Insulet (PODD) Is Strong On High Volume Today
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Insulet as such a stock due to the following factors:
- PODD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.7 million.
- PODD has traded 141,260 shares today.
- PODD is trading at 7.61 times the normal volume for the stock at this time of day.
- PODD is trading at a new high 6.04% 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 PODD:
Insulet Corporation, a medical device company, develops, manufactures, and sells insulin infusion systems for people with insulin-dependent diabetes in the United States. Currently there are 9 analysts that rate Insulet a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Insulet has been 552,000 shares per day over the past 30 days. Insulet has a market cap of $1.5 billion and is part of the health care sector and health services industry. The stock has a beta of 1.55 and a short float of 11% with 7.98 days to cover. Shares are down 28.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Insulet as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, deteriorating net income, generally high debt management risk and feeble growth in its earnings per share.
Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, INSULET CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$10.52 million or 201.51% 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 debt-to-equity ratio is very high at 6.75 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.06, which shows the ability to cover short-term cash needs.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Health Care Equipment & Supplies industry average. The net income has decreased by 5.5% when compared to the same quarter one year ago, dropping from -$11.83 million to -$12.48 million.
- INSULET CORP's earnings per share declined by 5.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, INSULET CORP reported poor results of -$1.26 versus -$0.93 in the prior year. This year, the market expects an improvement in earnings (-$0.68 versus -$1.26).
- You can view the full Insulet Ratings Report.
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