Trade-Ideas LLC identified

AMAG Pharmaceuticals

(

AMAG

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

  • AMAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.6 million.
  • AMAG has traded 111,174 shares today.
  • AMAG is trading at 2.91 times the normal volume for the stock at this time of day.
  • AMAG is trading at a new high 3.06% 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 AMAG:

AMAG Pharmaceuticals, Inc., a specialty pharmaceutical company, provides products and services with a focus on maternal health, anemia management, and cancer supportive care in the United States. AMAG has a PE ratio of 22. Currently there are 6 analysts that rate AMAG Pharmaceuticals a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for AMAG Pharmaceuticals has been 1.3 million shares per day over the past 30 days. AMAG has a market cap of $726.9 million and is part of the health care sector and drugs industry. Shares are down 26.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AMAG Pharmaceuticals as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • AMAG's very impressive revenue growth greatly exceeded the industry average of 6.8%. Since the same quarter one year prior, revenues leaped by 104.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Even though the current debt-to-equity ratio is 1.08, it is still below the industry average, suggesting that this level of debt is acceptable within the Biotechnology industry. Despite the fact that AMAG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.25 is high and demonstrates strong liquidity.
  • 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 95.0% when compared to the same quarter one year ago, falling from $143.01 million to $7.20 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. In comparison to the other companies in the Biotechnology industry and the overall market, AMAG PHARMACEUTICALS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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