Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Biomarin Pharmaceutical as such a stock due to the following factors:
- BMRN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $180.8 million.
- BMRN has traded 172,011 shares today.
- BMRN is trading at 2.10 times the normal volume for the stock at this time of day.
- BMRN is trading at a new low 6.03% 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 BMRN:
BioMarin Pharmaceutical Inc. develops and commercializes pharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and internationally. Currently there are 10 analysts that rate Biomarin Pharmaceutical a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Biomarin Pharmaceutical has been 1.5 million shares per day over the past 30 days. Biomarin has a market cap of $13.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.45 and a short float of 4.4% with 2.80 days to cover. Shares are down 17.9% year-to-date as of the close of trading on Wednesday.
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rates Biomarin Pharmaceutical as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity 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 significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 1321.3% when compared to the same quarter one year ago, falling from $7.45 million to -$90.93 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Biotechnology industry and the overall market, BIOMARIN PHARMACEUTICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The share price of BIOMARIN PHARMACEUTICAL INC has not done very well: it is down 15.94% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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 gross profit margin for BIOMARIN PHARMACEUTICAL INC is currently very high, coming in at 88.50%. Regardless of BMRN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BMRN's net profit margin of -43.52% significantly underperformed when compared to the industry average.
- BIOMARIN PHARMACEUTICAL 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, BIOMARIN PHARMACEUTICAL INC continued to lose money by earning -$0.92 versus -$1.29 in the prior year. This year, the market expects an improvement in earnings (-$0.59 versus -$0.92).
- You can view the full Biomarin Pharmaceutical Ratings Report.