Trade-Ideas LLC identified

Five Prime Therapeutics

(

FPRX

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

  • FPRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • FPRX has traded 60,705 shares today.
  • FPRX is trading at 2.06 times the normal volume for the stock at this time of day.
  • FPRX is trading at a new high 3.18% 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 FPRX:

Five Prime Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of protein therapeutics that block cancer and inflammatory disease processes. Currently there are 3 analysts that rate Five Prime Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Five Prime Therapeutics has been 354,400 shares per day over the past 30 days. Five Prime has a market cap of $450.3 million and is part of the health care sector and drugs industry. Shares are down 41.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Five Prime Therapeutics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow 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 decreased by 16.3% when compared to the same quarter one year ago, dropping from -$9.87 million to -$11.47 million.
  • Net operating cash flow has significantly decreased to -$9.66 million or 180.16% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • FIVE PRIME THERAPEUTICS INC's earnings per share improvement from the most recent quarter was slightly positive. 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, FIVE PRIME THERAPEUTICS INC reported poor results of -$1.80 versus -$1.33 in the prior year. For the next year, the market is expecting a contraction of 41.1% in earnings (-$2.54 versus -$1.80).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, FIVE PRIME THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • FPRX 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 9.86, which clearly demonstrates the ability to cover short-term cash needs.

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