Trade-Ideas LLC identified

Insys Therapeutics

(

INSY

) as a strong 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 $23.8 million.
  • INSY has traded 108,783 shares today.
  • INSY is trading at 4.13 times the normal volume for the stock at this time of day.
  • INSY is trading at a new high 3.24% 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 INSY:

Insys Therapeutics, Inc., a specialty pharmaceutical company, develops and commercializes supportive care products. INSY has a PE ratio of 46. 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 845,300 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 0.32 and a short float of 73.3% with 18.57 days to cover. Shares are up 7.5% 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, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 39.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in 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. To add to this, INSY has a quick ratio of 2.29, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for INSYS THERAPEUTICS INC is currently very high, coming in at 90.95%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, INSY's net profit margin of 9.42% significantly trails the industry average.
  • Net operating cash flow has increased to $15.90 million or 10.24% when compared to the same quarter last year. Despite an increase in cash flow, INSYS THERAPEUTICS INC's average is still marginally south of the industry average growth rate of 17.19%.

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