Regulus Therapeutics (RGLS): Today's Weak On High Volume Stock - 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

Regulus Therapeutics

(

RGLS

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

  • RGLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $109.2 million.
  • RGLS has traded 216,824 shares today.
  • RGLS is trading at 6.48 times the normal volume for the stock at this time of day.
  • RGLS is trading at a new low 4.04% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in RGLS with the Ticky from Trade-Ideas. See the FREE profile for RGLS NOW at Trade-Ideas

More details on RGLS:

Regulus Therapeutics Inc., a biopharmaceutical company, focuses on the discovery and development of drugs that target microRNAs for the treatment of various diseases in the United States. Currently there are 3 analysts that rate Regulus Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Regulus Therapeutics has been 934,500 shares per day over the past 30 days. Regulus has a market cap of $764.1 million and is part of the health care sector and drugs industry. Shares are up 144.7% year-to-date as of the close of trading on Wednesday.

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 Regulus Therapeutics as a

sell

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

Highlights from the ratings report include:

  • REGULUS THERAPEUTICS INC's earnings per share declined by 45.0% 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, REGULUS THERAPEUTICS INC reported poor results of -$0.58 versus -$0.37 in the prior year. For the next year, the market is expecting a contraction of 89.7% in earnings (-$1.10 versus -$0.58).
  • 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 62.9% when compared to the same quarter one year ago, falling from -$7.35 million to -$11.97 million.
  • Net operating cash flow has decreased to -$10.02 million or 34.84% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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, REGULUS THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RGLS, with its very weak revenue results, has greatly underperformed against the industry average of 44.2%. Since the same quarter one year prior, revenues plummeted by 84.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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

null