Trade-Ideas: Cerus (CERS) Is Today's Weak On High Relative Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cerus as such a stock due to the following factors:
- CERS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.5 million.
- CERS has traded 140,265 shares today.
- CERS is trading at 3.47 times the normal volume for the stock at this time of day.
- CERS is trading at a new low 3.13% 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 CERS:
Cerus Corporation, a biomedical products company, focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Currently there are 4 analysts that rate Cerus a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Cerus has been 1.3 million shares per day over the past 30 days. Cerus has a market cap of $573.6 million and is part of the health care sector and drugs industry. The stock has a beta of 1.59 and a short float of 15.2% with 12.34 days to cover. Shares are down 13.9% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Cerus as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and disappointing return on equity.
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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 78.3% when compared to the same quarter one year ago, falling from -$9.46 million to -$16.86 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 Health Care Equipment & Supplies industry and the overall market, CERUS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- 43.49% is the gross profit margin for CERUS CORP which we consider to be strong. Regardless of CERS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CERS's net profit margin of -220.95% significantly underperformed when compared to the industry average.
- The revenue fell significantly faster than the industry average of 29.7%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- CERUS CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CERUS CORP continued to lose money by earning -$0.66 versus -$0.69 in the prior year. This year, the market expects an improvement in earnings (-$0.65 versus -$0.66).
- You can view the full Cerus Ratings Report.
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