Galena Biopharma (GALE) Flagged As Strong On High Volume

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

  • GALE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
  • GALE has traded 794,839 shares today.
  • GALE is trading at 4.21 times the normal volume for the stock at this time of day.
  • GALE is trading at a new high 8.12% 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 GALE:

Galena Biopharma, Inc., a biopharmaceutical company, focuses on developing and commercializing oncology treatments that address major unmet medical needs to advance cancer care. Currently there are 5 analysts that rate Galena Biopharma a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Galena Biopharma has been 3.3 million shares per day over the past 30 days. Galena has a market cap of $248.2 million and is part of the health care sector and drugs industry. The stock has a beta of 1.08 and a short float of 22.2% with 8.54 days to cover. Shares are down 52.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Galena Biopharma as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity 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 significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 107.8% when compared to the same quarter one year ago, falling from -$9.60 million to -$19.94 million.
  • 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, GALENA BIOPHARMA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • GALENA BIOPHARMA 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GALENA BIOPHARMA INC reported poor results of -$0.79 versus -$0.62 in the prior year. This year, the market expects an improvement in earnings (-$0.40 versus -$0.79).
  • In its most recent trading session, GALE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • The gross profit margin for GALENA BIOPHARMA INC is currently very high, coming in at 80.91%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -855.46% is in-line with the industry average.

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

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