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Trade-Ideas LLC identified

Cytokinetics

(

CYTK

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

  • CYTK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.6 million.
  • CYTK has traded 143,363 shares today.
  • CYTK is trading at 9.00 times the normal volume for the stock at this time of day.
  • CYTK is trading at a new high 8.13% 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 CYTK:

TheStreet Recommends

Cytokinetics, Incorporated, a clinical stage biopharmaceutical company, focuses on the discovery and development of novel small molecule therapeutics that modulate muscle function for the treatment of serious diseases and medical conditions. Currently there are 4 analysts that rate Cytokinetics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cytokinetics has been 393,800 shares per day over the past 30 days. Cytokinetics has a market cap of $343.3 million and is part of the health care sector and drugs industry. The stock has a beta of 1.34 and a short float of 5.7% with 2.37 days to cover. Shares are up 7.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cytokinetics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income 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 underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has significantly decreased by 26.0% when compared to the same quarter one year ago, falling from -$8.37 million to -$10.55 million.
  • CYTOKINETICS INC's earnings per share declined by 17.4% 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, CYTOKINETICS INC continued to lose money by earning -$0.43 versus -$1.34 in the prior year. For the next year, the market is expecting a contraction of 176.7% in earnings (-$1.19 versus -$0.43).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Biotechnology industry and the overall market, CYTOKINETICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CYTK, with its decline in revenue, underperformed when compared the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 16.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • CYTK has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.61, which clearly demonstrates the ability to cover short-term cash needs.

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