Supernus Pharmaceuticals (SUPN) Is Today's Strong On High Volume Stock

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

  • SUPN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
  • SUPN has traded 53,074 shares today.
  • SUPN is trading at 2.80 times the normal volume for the stock at this time of day.
  • SUPN is trading at a new high 4.03% 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 SUPN:

Supernus Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States. Currently there are 3 analysts that rate Supernus Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Supernus Pharmaceuticals has been 468,500 shares per day over the past 30 days. Supernus has a market cap of $362.7 million and is part of the health care sector and drugs industry. The stock has a beta of 1.50 and a short float of 12.6% with 9.17 days to cover. Shares are up 11.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Supernus Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • SUPN's very impressive revenue growth greatly exceeded the industry average of 4.6%. Since the same quarter one year prior, revenues leaped by 10460.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 108.98% and other important driving factors, this stock has surged by 28.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • SUPERNUS PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUPERNUS PHARMACEUTICALS INC reported poor results of -$2.92 versus -$1.87 in the prior year. This year, the market expects an improvement in earnings (-$0.03 versus -$2.92).
  • 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, SUPERNUS PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SUPERNUS PHARMACEUTICALS INC is currently extremely low, coming in at 13.44%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.78% trails 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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