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
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Medivation as such a stock due to the following factors:
- MDVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $149.3 million.
- MDVN has traded 413,567 shares today.
- MDVN is trading at 8.73 times the normal volume for the stock at this time of day.
- MDVN is trading at a new low 3.06% 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 MDVN:
Medivation, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies to treat serious diseases in the United States. It offers XTANDI for the treatment of post-chemotherapy metastatic castration-resistant prostate cancer (mCRPC) patients. MDVN has a PE ratio of 350.7. Currently there are 12 analysts that rate Medivation a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Medivation has been 1.1 million shares per day over the past 30 days. Medivation has a market cap of $7.8 billion and is part of the health care sector and drugs industry. The stock has a beta of -0.45 and a short float of 6.7% with 2.23 days to cover. Shares are up 54.5% year-to-date as of the close of trading on Tuesday.
rates Medivation as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- MDVN's very impressive revenue growth greatly exceeded the industry average of 43.1%. Since the same quarter one year prior, revenues leaped by 111.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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, MEDIVATION INC's return on equity exceeds that of both the industry average and the S&P 500.
- 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 1078.3% when compared to the same quarter one year prior, rising from -$4.90 million to $47.92 million.
- Net operating cash flow has significantly increased by 312.55% to $49.15 million when compared to the same quarter last year. In addition, MEDIVATION INC has also vastly surpassed the industry average cash flow growth rate of 100.84%.
- 37.87% is the gross profit margin for MEDIVATION INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 32.35% trails the industry average.
- You can view the full Medivation Ratings Report.