Trade-Ideas LLC identified

Sorrento Therapeutics

(

SRNE

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

  • SRNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • SRNE has traded 299,416 shares today.
  • SRNE is trading at 10.34 times the normal volume for the stock at this time of day.
  • SRNE is trading at a new high 11.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 SRNE:

Sorrento Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, acquisition, development, and commercialization of proprietary drug therapeutics for addressing unmet medical needs in the United States, Europe, and internationally. Currently there are 3 analysts that rate Sorrento Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Sorrento Therapeutics has been 414,300 shares per day over the past 30 days. Sorrento has a market cap of $295.0 million and is part of the health care sector and drugs industry. The stock has a beta of 1.59 and a short float of 12.9% with 7.45 days to cover. Shares are down 22.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sorrento Therapeutics as a

sell

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

Highlights from the ratings report include:

  • Net operating cash flow has significantly decreased to -$18.36 million or 228.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • SORRENTO THERAPEUTICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SORRENTO THERAPEUTICS INC reported poor results of -$1.32 versus -$1.30 in the prior year. For the next year, the market is expecting a contraction of 41.3% in earnings (-$1.87 versus -$1.32).
  • After a year of stock price fluctuations, the net result is that SRNE'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. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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, SORRENTO THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SRNE, with its decline in revenue, underperformed when compared the industry average of 13.4%. Since the same quarter one year prior, revenues fell by 13.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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