Trade-Ideas LLC identified

Rockwell Medical

(

RMTI

) as a "perilous reversal" (up big yesterday but down big today) 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 $12.7 million.
  • RMTI has traded 98,160 shares today.
  • RMTI is down 3.7% today.
  • RMTI was up 9.6% yesterday.

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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 900,600 shares per day over the past 30 days. Rockwell Medical has a market cap of $579.6 million and is part of the health care sector and drugs industry. The stock has a beta of 0.65 and a short float of 19.6% with 8.88 days to cover. Shares are up 23.1% 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 and poor profit margins.

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).
  • After a year of stock price fluctuations, the net result is that RMTI's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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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