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 or Stephanie Link.

Trade-Ideas LLC identified

Vanda Pharmaceuticals

(

VNDA

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vanda Pharmaceuticals as such a stock due to the following factors:

  • VNDA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.5 million.
  • VNDA traded 82,549 shares today in the pre-market hours as of 8:21 AM, representing 12.7% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in VNDA with the Ticky from Trade-Ideas. See the FREE profile for VNDA NOW at Trade-Ideas

More details on VNDA:

Vanda Pharmaceuticals Inc., a biopharmaceutical company, is engaged in the development and commercialization of pharmaceutical products. Currently there is 1 analyst that rates Vanda Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vanda Pharmaceuticals has been 645,400 shares per day over the past 30 days. Vanda has a market cap of $431.6 million and is part of the health care sector and drugs industry. The stock has a beta of 2.08 and a short float of 34.7% with 13.77 days to cover. Shares are up 2.6% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vanda Pharmaceuticals as a

sell

. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from the ratings report include:

  • 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 Biotechnology industry and the overall market, VANDA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • VANDA PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, VANDA PHARMACEUTICALS INC continued to lose money by earning -$0.68 versus -$0.98 in the prior year. For the next year, the market is expecting a contraction of 152.9% in earnings (-$1.72 versus -$0.68).
  • Net operating cash flow has increased to -$7.60 million or 26.01% when compared to the same quarter last year. Despite an increase in cash flow of 26.01%, VANDA PHARMACEUTICALS INC is still growing at a significantly lower rate than the industry average of 117.01%.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 73.6% when compared to the same quarter one year prior, rising from -$5.41 million to -$1.43 million.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null