Trade-Ideas LLC identified

Insys Therapeutics

(

INSY

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

  • INSY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.1 million.
  • INSY has traded 96,977 shares today.
  • INSY is trading at 3.24 times the normal volume for the stock at this time of day.
  • INSY is trading at a new low 3.10% 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 INSY:

TST Recommends

Insys Therapeutics, Inc., a specialty pharmaceutical company, develops and commercializes supportive care products. INSY has a PE ratio of 33. Currently there are 2 analysts that rate Insys Therapeutics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Insys Therapeutics has been 919,500 shares per day over the past 30 days. Insys has a market cap of $1.6 billion and is part of the health care sector and drugs industry. The stock has a beta of -0.16 and a short float of 90.4% with 18.89 days to cover. Shares are down 24.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Insys Therapeutics as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • INSY's very impressive revenue growth greatly exceeded the industry average of 13.6%. Since the same quarter one year prior, revenues leaped by 56.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • INSY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.67, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 127.1% when compared to the same quarter one year prior, rising from $11.51 million to $26.13 million.
  • Net operating cash flow has significantly increased by 238.50% to $42.64 million when compared to the same quarter last year. In addition, INSYS THERAPEUTICS INC has also vastly surpassed the industry average cash flow growth rate of 0.88%.

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