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Trade-Ideas LLC identified

Phibro Animal Health

(

PAHC

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

  • PAHC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • PAHC has traded 54,124 shares today.
  • PAHC is trading at 3.57 times the normal volume for the stock at this time of day.
  • PAHC is trading at a new low 3.11% 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 PAHC:

TheStreet Recommends

Phibro Animal Health Corporation operates as a diversified animal health and mineral nutrition company in the United States, Israel, Latin America, Canada, Europe, Africa, and the Asia Pacific. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The stock currently has a dividend yield of 2.1%. PAHC has a PE ratio of 13. Currently there are 2 analysts that rate Phibro Animal Health a buy, 2 analysts rate it a sell, and none rate it a hold.

The average volume for Phibro Animal Health has been 205,000 shares per day over the past 30 days. Phibro Animal Health has a market cap of $761.7 million and is part of the health care sector and health services industry. Shares are down 35.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Phibro Animal Health as a

sell

. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, 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 $5.02 million or 76.17% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • PAHC'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 40.44%, 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The debt-to-equity ratio is very high at 4.72 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, PAHC's quick ratio is somewhat strong at 1.49, demonstrating the ability to handle short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, PHIBRO ANIMAL HEALTH CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • PAHC, with its decline in revenue, slightly underperformed the industry average of 1.0%. Since the same quarter one year prior, revenues slightly dropped by 2.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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