Today's Weak On High Volume Stock: TherapeuticsMD (TXMD)
Trade-Ideas LLC identified TherapeuticsMD ( TXMD) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified TherapeuticsMD as such a stock due to the following factors:
- TXMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.6 million.
- TXMD has traded 142,255 shares today.
- TXMD is trading at 2.36 times the normal volume for the stock at this time of day.
- TXMD is trading at a new low 5.10% 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 TXMD: TherapeuticsMD, Inc., a U.S. women's healthcare product company, manufactures and distributes branded and generic prescription prenatal vitamins, as well as over-the-counter, vitamins, and cosmetics. Currently there are 5 analysts that rate TherapeuticsMD a buy, no analysts rate it a sell, and none rate it a hold. The average volume for TherapeuticsMD has been 1.4 million shares per day over the past 30 days. TherapeuticsMD has a market cap of $1.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.47 and a short float of 35.5% with 28.68 days to cover. Shares are down 18.7% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates TherapeuticsMD as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- 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, THERAPEUTICSMD INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to -$16.61 million or 8.66% when compared to the same quarter last year. Despite a decrease in cash flow THERAPEUTICSMD INC is still fairing well by exceeding its industry average cash flow growth rate of -28.37%.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income has decreased by 7.2% when compared to the same quarter one year ago, dropping from -$16.30 million to -$17.48 million.
- THERAPEUTICSMD INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, THERAPEUTICSMD INC reported poor results of -$0.50 versus -$0.35 in the prior year. This year, the market expects an improvement in earnings (-$0.41 versus -$0.50).
- The gross profit margin for THERAPEUTICSMD INC is currently very high, coming in at 78.05%. Regardless of TXMD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TXMD's net profit margin of -310.53% significantly underperformed when compared to the industry average.
- You can view the full TherapeuticsMD Ratings Report.
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