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Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Allscripts Healthcare Solutions as such a stock due to the following factors:
- MDRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.1 million.
- MDRX has traded 5.3 million shares today.
- MDRX traded in a range 221.4% of the normal price range with a price range of $0.85.
- MDRX traded below its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on MDRX:
Allscripts Healthcare Solutions, Inc. Currently there are 8 analysts that rate Allscripts Healthcare Solutions a buy, 1 analyst rates it a sell, and 10 rate it a hold.
The average volume for Allscripts Healthcare Solutions has been 2.8 million shares per day over the past 30 days. Allscripts Healthcare has a market cap of $2.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.40 and a short float of 8% with 3.35 days to cover. Shares are down 0.2% year-to-date as of the close of trading on Thursday.
rates Allscripts Healthcare Solutions as a
. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- MDRX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.50%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Health Care Technology industry average, but is greater than that of the S&P 500. The net income increased by 47.4% when compared to the same quarter one year prior, rising from -$48.94 million to -$25.76 million.
- 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 Health Care Technology industry and the overall market, ALLSCRIPTS HEALTHCARE SOLTNS's return on equity significantly trails that of both the industry average and the S&P 500.
- 49.21% is the gross profit margin for ALLSCRIPTS HEALTHCARE SOLTNS which we consider to be strong. Regardless of MDRX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MDRX's net profit margin of -7.45% significantly underperformed when compared to the industry average.
- Despite currently having a low debt-to-equity ratio of 0.46, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.72 is weak.
- You can view the full Allscripts Healthcare Solutions Ratings Report.