Weak On High Volume: Ampio Pharmaceuticals (AMPE)

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 Ampio Pharmaceuticals ( AMPE) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ampio Pharmaceuticals as such a stock due to the following factors:

  • AMPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
  • AMPE has traded 3.7 million shares today.
  • AMPE is trading at 6.36 times the normal volume for the stock at this time of day.
  • AMPE is trading at a new low 13.04% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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.

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

More details on AMPE:

Ampio Pharmaceuticals, Inc., a development stage biopharmaceutical company, develops therapies for the treatment of prevalent inflammatory conditions in the United States. Currently there are 2 analysts that rate Ampio Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Ampio Pharmaceuticals has been 631,500 shares per day over the past 30 days. Ampio has a market cap of $387.7 million and is part of the health care sector and drugs industry. The stock has a beta of 0.25 and a short float of 14.7% with 4.92 days to cover. Shares are up 4.6% year-to-date as of the close of trading on Thursday.

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 Ampio Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • AMPIO PHARMACEUTICALS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, AMPIO PHARMACEUTICALS INC reported poor results of -$0.62 versus -$0.34 in the prior year. For the next year, the market is expecting a contraction of 45.2% in earnings (-$0.90 versus -$0.62).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 145.1% when compared to the same quarter one year ago, falling from -$4.18 million to -$10.24 million.
  • Net operating cash flow has significantly decreased to -$8.48 million or 135.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 Pharmaceuticals industry and the overall market, AMPIO PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists