Macrogenics (MGNX) Is Strong On High Volume Today - TheStreet

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Macrogenics

(

MGNX

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

  • MGNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.5 million.
  • MGNX has traded 51,169 shares today.
  • MGNX is trading at 8.10 times the normal volume for the stock at this time of day.
  • MGNX is trading at a new high 5.03% 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 MGNX:

MacroGenics, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing monoclonal antibody-based therapeutics for the treatment of cancer and autoimmune diseases. Currently there are 6 analysts that rate Macrogenics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Macrogenics has been 204,800 shares per day over the past 30 days. Macrogenics has a market cap of $725.4 million and is part of the health care sector and drugs industry. Shares are down 0.8% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Macrogenics as a

sell

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

Highlights from the ratings report include:

  • MACROGENICS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 935.7% in earnings (-$1.17 versus $0.14).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 159.5% when compared to the same quarter one year ago, falling from $6.60 million to -$3.93 million.
  • The revenue fell significantly faster than the industry average of 40.8%. Since the same quarter one year prior, revenues slightly dropped by 9.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to other companies in the Biotechnology industry and the overall market, MACROGENICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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