Trade-Ideas LLC identified

Rockwell Medical

(

RMTI

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

  • RMTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.9 million.
  • RMTI has traded 127,683 shares today.
  • RMTI is trading at 2.90 times the normal volume for the stock at this time of day.
  • RMTI is trading at a new low 5.01% 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 RMTI:

Rockwell Medical, Inc. operates as an integrated biopharmaceutical company in the United States and internationally. It offers products and services for the treatment of end-stage renal disease, chronic kidney disease, iron deficiency, secondary hyperparathyroidism, and hemodialysis. Currently there are 3 analysts that rate Rockwell Medical a buy, 2 analysts rate it a sell, and 1 rates it a hold.

The average volume for Rockwell Medical has been 799,000 shares per day over the past 30 days. Rockwell Medical has a market cap of $412.3 million and is part of the health care sector and drugs industry. The stock has a beta of 1.50 and a short float of 23.1% with 11.70 days to cover. Shares are down 20.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rockwell Medical as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • RMTI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 11.55, which clearly demonstrates the ability to cover short-term cash needs.
  • ROCKWELL MEDICAL INC has improved earnings per share by 37.5% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ROCKWELL MEDICAL INC continued to lose money by earning -$0.52 versus -$1.65 in the prior year. This year, the market expects an improvement in earnings (-$0.14 versus -$0.52).
  • Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ROCKWELL MEDICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ROCKWELL MEDICAL INC is rather low; currently it is at 17.48%. Regardless of RMTI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RMTI's net profit margin of -19.58% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly decreased to -$6.39 million or 96.76% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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