Strong On High Relative Volume: Biocryst Pharmaceuticals (BCRX)

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

  • BCRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.1 million.
  • BCRX has traded 433,340 shares today.
  • BCRX is trading at 4.04 times the normal volume for the stock at this time of day.
  • BCRX is trading at a new high 4.21% 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 BCRX:

BioCryst Pharmaceuticals, Inc., a biotechnology company, designs, optimizes, and develops small molecule pharmaceuticals that block key enzymes involved in the pathogenesis of diseases. Currently there are 8 analysts that rate Biocryst Pharmaceuticals a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Biocryst Pharmaceuticals has been 1.1 million shares per day over the past 30 days. Biocryst has a market cap of $749.1 million and is part of the health care sector and drugs industry. The stock has a beta of 3.44 and a short float of 10.7% with 9.28 days to cover. Shares are up 37.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Biocryst Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.

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 decreased by 20.3% when compared to the same quarter one year ago, dropping from -$12.17 million to -$14.65 million.
  • Net operating cash flow has significantly decreased to -$7.10 million or 145.31% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • BIOCRYST PHARMACEUTICALS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BIOCRYST PHARMACEUTICALS INC continued to lose money by earning -$0.55 versus -$0.79 in the prior year. For the next year, the market is expecting a contraction of 47.3% in earnings (-$0.81 versus -$0.55).
  • Compared to other companies in the Biotechnology industry and the overall market, BIOCRYST PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.96, which clearly demonstrates the ability to cover short-term cash needs.

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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