Trade-Ideas LLC identified

Supernus Pharmaceuticals

(

SUPN

) as a weak 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 $7.7 million.
  • SUPN has traded 180,525 shares today.
  • SUPN is trading at 5.07 times the normal volume for the stock at this time of day.
  • SUPN is trading at a new low 3.02% 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 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 58. Currently there are 6 analysts that rate Supernus Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Supernus Pharmaceuticals has been 562,100 shares per day over the past 30 days. Supernus has a market cap of $917.8 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 6% with 6.65 days to cover. Shares are up 37.8% 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

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • SUPN's very impressive revenue growth greatly exceeded the industry average of 1.0%. Since the same quarter one year prior, revenues leaped by 53.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SUPN's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
  • SUPERNUS PHARMACEUTICALS INC reported significant earnings per share improvement 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. During the past fiscal year, SUPERNUS PHARMACEUTICALS INC increased its bottom line by earning $0.27 versus $0.19 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.27).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 443.8% when compared to the same quarter one year prior, rising from $0.92 million to $4.99 million.
  • The gross profit margin for SUPERNUS PHARMACEUTICALS INC is currently very high, coming in at 96.27%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.57% trails the industry average.

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