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Trade-Ideas LLC identified

Cytokinetics

(

CYTK

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

  • CYTK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
  • CYTK has traded 55,992 shares today.
  • CYTK is trading at 3.38 times the normal volume for the stock at this time of day.
  • CYTK is trading at a new low 3.09% 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 CYTK:

TheStreet Recommends

Cytokinetics, Incorporated, a clinical stage biopharmaceutical company, focuses on the discovery and development of novel small molecule therapeutics that modulate muscle function for the treatment of serious diseases and medical conditions. Currently there are 4 analysts that rate Cytokinetics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cytokinetics has been 678,100 shares per day over the past 30 days. Cytokinetics has a market cap of $317.0 million and is part of the health care sector and drugs industry. The stock has a beta of 1.48 and a short float of 12% with 8.89 days to cover. Shares are down 22.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cytokinetics 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 and feeble growth in its earnings per share.

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 48.2% when compared to the same quarter one year ago, falling from -$5.97 million to -$8.85 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, CYTOKINETICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to -$10.35 million or 8.74% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, CYTOKINETICS INC has marginally lower results.
  • CYTOKINETICS INC's earnings per share declined by 43.8% 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, CYTOKINETICS INC continued to lose money by earning -$0.43 versus -$1.34 in the prior year. For the next year, the market is expecting a contraction of 134.9% in earnings (-$1.01 versus -$0.43).
  • CYTK, with its decline in revenue, underperformed when compared the industry average of 13.6%. Since the same quarter one year prior, revenues fell by 15.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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