Trade-Ideas LLC identified

Inogen

(

INGN

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

  • INGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
  • INGN has traded 152,945 shares today.
  • INGN is trading at 13.45 times the normal volume for the stock at this time of day.
  • INGN is trading at a new low 7.10% 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 INGN:

Inogen, Inc., a medical technology company, primarily develops, manufactures, and markets portable oxygen concentrators for patients, physicians and other clinicians, and third-party payors in the United States and internationally. INGN has a PE ratio of 87. Currently there are 5 analysts that rate Inogen a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Inogen has been 223,100 shares per day over the past 30 days. Inogen has a market cap of $963.7 million and is part of the health care sector and health services industry. Shares are up 20.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Inogen as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

Highlights from the ratings report include:

  • INGN's revenue growth has slightly outpaced the industry average of 29.7%. Since the same quarter one year prior, revenues rose by 38.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • INGN's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.77, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 171.42% and other important driving factors, this stock has surged by 36.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The gross profit margin for INOGEN INC is rather high; currently it is at 58.30%. Regardless of INGN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.53% trails the industry average.

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