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Trade-Ideas LLC identified

Ocular Therapeutix

(

OCUL

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

  • OCUL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • OCUL has traded 62,626 shares today.
  • OCUL is trading at 2.93 times the normal volume for the stock at this time of day.
  • OCUL is trading at a new low 3.13% 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 OCUL:

TheStreet Recommends

Ocular Therapeutix, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies for diseases and conditions of the eye using its proprietary hydrogel platform technology in the United States. Currently there are 2 analysts that rate Ocular Therapeutix a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Ocular Therapeutix has been 375,400 shares per day over the past 30 days. Ocular Therapeutix has a market cap of $147.1 million and is part of the health care sector and drugs industry. Shares are down 38.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ocular Therapeutix as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, weak operating cash flow, generally disappointing historical performance in the stock itself and deteriorating net income.

Highlights from the ratings report include:

  • OCULAR THERAPEUTIX INC's earnings per share declined by 25.7% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, OCULAR THERAPEUTIX INC reported poor results of -$1.70 versus -$1.04 in the prior year. For the next year, the market is expecting a contraction of 9.1% in earnings (-$1.86 versus -$1.70).
  • Net operating cash flow has decreased to -$9.26 million or 34.55% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The change in net income from the same quarter one year ago has exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income has significantly decreased by 43.0% when compared to the same quarter one year ago, falling from -$7.58 million to -$10.84 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 73.83%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 25.71% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, OCULAR THERAPEUTIX INC's return on equity significantly trails that of both the industry average and the S&P 500.

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