Trade-Ideas LLC identified

Heartware International

(

HTWR

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Heartware International as such a stock due to the following factors:

  • HTWR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.4 million.
  • HTWR traded 23,486 shares today in the pre-market hours as of 7:57 AM, representing 13% of its average daily volume.

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More details on HTWR:

HeartWare International, Inc., a medical device company, designs, develops, manufactures, and markets miniaturized implantable heart pumps or ventricular assist devices (VAD) for the treatment of advanced heart failure in the United States, Germany, and internationally. Currently there are 7 analysts that rate Heartware International a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Heartware International has been 314,500 shares per day over the past 30 days. Heartware International has a market cap of $552.7 million and is part of the health care sector and health services industry. The stock has a beta of 0.47 and a short float of 14.5% with 9.76 days to cover. Shares are down 34.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Heartware International as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Health Care Equipment & Supplies industry average. The net income has decreased by 20.1% when compared to the same quarter one year ago, dropping from -$14.54 million to -$17.46 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, HEARTWARE INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$22.19 million or 184.86% 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 debt-to-equity ratio of 1.08 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 4.42, which shows the ability to cover short-term cash needs.
  • Looking at the price performance of HTWR's shares over the past 12 months, there is not much good news to report: the stock is down 57.42%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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