Trade-Ideas: Alnylam Pharmaceuticals (ALNY) Is Today's "Water-Logged And Getting Wetter" Stock
Trade-Ideas LLC identified Alnylam Pharmaceuticals ( ALNY) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Alnylam Pharmaceuticals as such a stock due to the following factors:
- ALNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.5 million.
- ALNY has traded 1.4 million shares today.
- ALNY traded in a range 214.1% of the normal price range with a price range of $5.83.
- ALNY traded below its daily resistance level (quality: 32 days, meaning that the stock is crossing a resistance level set by the last 32 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on ALNY: Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes novel therapeutics based on RNA interference. Currently there are 8 analysts that rate Alnylam Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Alnylam Pharmaceuticals has been 1.0 million shares per day over the past 30 days. Alnylam has a market cap of $5.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.21 and a short float of 9.1% with 7.99 days to cover. Shares are down 26.9% year-to-date as of the close of trading on Monday.
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Analysis:
rates Alnylam Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, 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 324.1% when compared to the same quarter one year ago, falling from -$21.39 million to -$90.72 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.17%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 282.14% 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.
- Net operating cash flow has decreased to -$53.06 million or 44.84% when compared to the same quarter last year. Despite a decrease in cash flow of 44.84%, ALNYLAM PHARMACEUTICALS INC is in line with the industry average cash flow growth rate of -49.98%.
- ALNYLAM 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. 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, ALNYLAM PHARMACEUTICALS INC continued to lose money by earning -$3.45 versus -$5.14 in the prior year. For the next year, the market is expecting a contraction of 30.3% in earnings (-$4.50 versus -$3.45).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ALNYLAM PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Alnylam Pharmaceuticals Ratings Report.
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