Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Rockwell Medical

(

RMTI

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

  • RMTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
  • RMTI has traded 117,826 shares today.
  • RMTI is trading at 2.51 times the normal volume for the stock at this time of day.
  • RMTI is trading at a new high 3.07% 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 RMTI:

Rockwell Medical, Inc. operates as an integrated biopharmaceutical company in the United States and internationally. It offers products and services for the treatment of end-stage renal disease, chronic kidney disease, iron deficiency, secondary hyperparathyroidism, and hemodialysis. Currently there are 4 analysts that rate Rockwell Medical a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Rockwell Medical has been 805,500 shares per day over the past 30 days. Rockwell Medical has a market cap of $531.1 million and is part of the health care sector and drugs industry. The stock has a beta of 1.49 and a short float of 26.8% with 28.09 days to cover. Shares are up 4.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rockwell Medical as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The gross profit margin for ROCKWELL MEDICAL INC is rather low; currently it is at 19.42%. Regardless of RMTI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RMTI's net profit margin of -44.18% significantly underperformed when compared to the industry average.
  • RMTI has underperformed the S&P 500 Index, declining 10.62% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 Health Care Equipment & Supplies industry and the overall market, ROCKWELL MEDICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RMTI 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 9.20, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 315.59% to $17.56 million when compared to the same quarter last year. In addition, ROCKWELL MEDICAL INC has also vastly surpassed the industry average cash flow growth rate of -7.22%.

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