Today's Weak On High Volume Stock: Halozyme Therapeutics (HALO)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Halozyme Therapeutics as such a stock due to the following factors:
- HALO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.7 million.
- HALO has traded 116,817 shares today.
- HALO is trading at 2.79 times the normal volume for the stock at this time of day.
- HALO is trading at a new low 5.18% 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 HALO:
Halozyme Therapeutics, Inc., a biotechnology company, researches, develops, and commercializes human enzymes. Currently there are 4 analysts that rate Halozyme Therapeutics a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Halozyme Therapeutics has been 1.8 million shares per day over the past 30 days. Halozyme has a market cap of $1.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.87 and a short float of 19.5% with 13.28 days to cover. Shares are down 43.2% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Halozyme Therapeutics as a
. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk.
Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to -$15.20 million or 1518.42% 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 gross profit margin for HALOZYME THERAPEUTICS INC is currently extremely low, coming in at 11.34%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, HALO's net profit margin of 8.26% is significantly lower than the industry average.
- The debt-to-equity ratio of 1.16 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, HALO has managed to keep a strong quick ratio of 2.25, which demonstrates the ability to cover short-term cash needs.
- HALO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 36.31%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, HALOZYME THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Halozyme Therapeutics Ratings Report.
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