Trade-Ideas LLC identified

Supernus Pharmaceuticals

(

SUPN

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

  • SUPN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • SUPN has traded 97,102 shares today.
  • SUPN is trading at 3.86 times the normal volume for the stock at this time of day.
  • SUPN is trading at a new high 6.04% 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 SUPN:

Supernus Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States. SUPN has a PE ratio of 32. Currently there are 6 analysts that rate Supernus Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Supernus Pharmaceuticals has been 780,200 shares per day over the past 30 days. Supernus has a market cap of $540.1 million and is part of the health care sector and drugs industry. The stock has a beta of 0.94 and a short float of 12.7% with 6.20 days to cover. Shares are down 21.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Supernus Pharmaceuticals as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

  • SUPN's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SUPN has a quick ratio of 1.89, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SUPERNUS PHARMACEUTICALS 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUPERNUS PHARMACEUTICALS INC turned its bottom line around by earning $0.19 versus -$2.92 in the prior year. This year, the market expects an improvement in earnings ($0.20 versus $0.19).
  • SUPN, with its decline in revenue, underperformed when compared the industry average of 3.4%. Since the same quarter one year prior, revenues fell by 26.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 84.8% when compared to the same quarter one year ago, falling from $27.86 million to $4.22 million.
  • Net operating cash flow has significantly decreased to -$2.98 million or 111.13% 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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