Trade-Ideas LLC identified

Seattle Genetics

(

SGEN

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

  • SGEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.3 million.
  • SGEN has traded 214,956 shares today.
  • SGEN is trading at 2.12 times the normal volume for the stock at this time of day.
  • SGEN is trading at a new low 7.05% 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 SGEN:

TheStreet Recommends

Seattle Genetics, Inc., a biotechnology company, develops and commercializes antibody-based therapies for the treatment of cancer. Currently there are 4 analysts that rate Seattle Genetics a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Seattle Genetics has been 980,900 shares per day over the past 30 days. Seattle has a market cap of $5.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.92 and a short float of 27.4% with 15.60 days to cover. Shares are down 17.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Seattle Genetics 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:

  • SEATTLE GENETICS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, SEATTLE GENETICS INC reported poor results of -$0.62 versus -$0.52 in the prior year. For the next year, the market is expecting a contraction of 53.2% in earnings (-$0.95 versus -$0.62).
  • 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 69.8% when compared to the same quarter one year ago, falling from -$15.57 million to -$26.44 million.
  • Net operating cash flow has significantly decreased to -$40.56 million or 243.98% 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, SEATTLE GENETICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SEATTLE GENETICS INC is currently very high, coming in at 92.42%. Regardless of SGEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SGEN's net profit margin of -31.44% significantly underperformed when compared to the industry average.

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