Trade-Ideas LLC identified

Aegerion Pharmaceuticals

(

AEGR

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

  • AEGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • AEGR has traded 94,554 shares today.
  • AEGR is trading at 4.28 times the normal volume for the stock at this time of day.
  • AEGR is trading at a new high 3.19% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 AEGR:

TheStreet Recommends

Aegerion Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapies for patients with debilitating rare diseases in the United States. Currently there are 3 analysts that rate Aegerion Pharmaceuticals a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Aegerion Pharmaceuticals has been 570,800 shares per day over the past 30 days. Aegerion has a market cap of $115.8 million and is part of the health care sector and drugs industry. The stock has a beta of 2.13 and a short float of 35.6% with 6.49 days to cover. Shares are down 61.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Aegerion Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, 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 350.9% when compared to the same quarter one year ago, falling from -$8.12 million to -$36.60 million.
  • 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 Biotechnology industry and the overall market, AEGERION PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 2.21 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, AEGR's quick ratio is somewhat strong at 1.19, demonstrating the ability to handle short-term liquidity needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 85.87%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 334.48% compared to 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.
  • AEGERION PHARMACEUTICALS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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, AEGERION PHARMACEUTICALS INC reported poor results of -$2.54 versus -$1.36 in the prior year. This year, the market expects an improvement in earnings (-$1.75 versus -$2.54).

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