Trade-Ideas: Agenus (AGEN) Is Today's Weak On High Relative Volume Stock - TheStreet

Trade-Ideas LLC identified

Agenus

(

AGEN

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

  • AGEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.6 million.
  • AGEN has traded 456,448 shares today.
  • AGEN is trading at 2.21 times the normal volume for the stock at this time of day.
  • AGEN is trading at a new low 3.10% 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 AGEN:

Agenus Inc., an immunotherapy company, engages in discovering and developing innovative treatments for patients with cancer and other diseases. Its treatments focus on providing therapeutic benefit through modulation of immune function. Currently there are 3 analysts that rate Agenus a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Agenus has been 1.3 million shares per day over the past 30 days. Agenus has a market cap of $394.5 million and is part of the health care sector and drugs industry. The stock has a beta of 0.45 and a short float of 19% with 9.02 days to cover. Shares are up 13.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Agenus as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk 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 61.8% when compared to the same quarter one year ago, falling from -$8.11 million to -$13.12 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, AGENUS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$18.01 million or 122.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio of 1.44 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 7.30, which shows the ability to cover short-term cash needs.
  • AGENUS INC's earnings per share declined by 23.1% 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, AGENUS INC continued to lose money by earning -$0.67 versus -$1.15 in the prior year. For the next year, the market is expecting a contraction of 53.7% in earnings (-$1.03 versus -$0.67).

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