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Trade-Ideas LLC identified

Macrogenics

(

MGNX

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

  • MGNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.1 million.
  • MGNX has traded 94,600 shares today.
  • MGNX is trading at 3.15 times the normal volume for the stock at this time of day.
  • MGNX is trading at a new low 5.32% 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 MGNX:

TheStreet Recommends

MacroGenics, Inc., a biopharmaceutical company, focuses on discovering and developing antibody-based therapeutics for the treatment of cancer primarily by modulating the human immune system, as well as various autoimmune disorders and infectious diseases. Currently there are 5 analysts that rate Macrogenics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Macrogenics has been 289,800 shares per day over the past 30 days. Macrogenics has a market cap of $669.5 million and is part of the health care sector and drugs industry. Shares are down 30.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Macrogenics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself 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 49.6% when compared to the same quarter one year ago, falling from -$19.02 million to -$28.45 million.
  • Net operating cash flow has decreased to -$24.16 million or 19.79% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Looking at the price performance of MGNX's shares over the past 12 months, there is not much good news to report: the stock is down 37.15%, 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.
  • MACROGENICS INC's earnings per share declined by 22.1% 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, MACROGENICS INC continued to lose money by earning -$0.58 versus -$1.38 in the prior year. For the next year, the market is expecting a contraction of 400.9% in earnings (-$2.91 versus -$0.58).
  • 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, MACROGENICS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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