Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Medivation as such a stock due to the following factors:
- MDVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $112.1 million.
- MDVN has traded 1.1 million shares today.
- MDVN is trading at 7.17 times the normal volume for the stock at this time of day.
- MDVN is trading at a new low 12.00% 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 MDVN:
Medivation, Inc., a biopharmaceutical company, focuses on the development and commercialization of medical therapies to treat serious diseases in the United States. It offers XTANDI for the treatment of post-chemotherapy metastatic castration-resistant prostate cancer (CRPC) patients. MDVN has a PE ratio of 24. Currently there are 9 analysts that rate Medivation a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Medivation has been 2.6 million shares per day over the past 30 days. Medivation has a market cap of $7.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.04 and a short float of 3.4% with 1.28 days to cover. Shares are down 14.7% year-to-date as of the close of trading on Monday.
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rates Medivation as a
. 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 37.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- MDVN's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MDVN has a quick ratio of 2.32, which demonstrates the ability of the company to cover short-term liquidity needs.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 13.2% when compared to the same quarter one year ago, dropping from $164.21 million to $142.51 million.
- Net operating cash flow has decreased to $109.98 million or 33.05% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Medivation Ratings Report.