Trade-Ideas LLC identified

Ironwood Pharmaceuticals

(

IRWD

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

  • IRWD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
  • IRWD has traded 213,580 shares today.
  • IRWD is trading at 3.17 times the normal volume for the stock at this time of day.
  • IRWD is trading at a new high 3.10% 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 IRWD:

Ironwood Pharmaceuticals, Inc., a pharmaceutical company, engages in the research, development, and commercialization of human therapeutic products. Currently there are 2 analysts that rate Ironwood Pharmaceuticals a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Ironwood Pharmaceuticals has been 1.6 million shares per day over the past 30 days. Ironwood has a market cap of $1.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.75 and a short float of 23.9% with 12.43 days to cover. Shares are down 34.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ironwood Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:

  • IRWD has underperformed the S&P 500 Index, declining 14.76% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The debt-to-equity ratio is very high at 2.73 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 8.38, which shows the ability to cover short-term cash needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, IRONWOOD PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to -$25.55 million or 29.42% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 14.48%.
  • IRONWOOD PHARMACEUTICALS INC has improved earnings per share by 22.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, IRONWOOD PHARMACEUTICALS INC continued to lose money by earning -$1.39 versus -$2.38 in the prior year. This year, the market expects an improvement in earnings (-$0.84 versus -$1.39).

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