Inovio Pharmaceuticals (INO): Today's Weak 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 Inovio Pharmaceuticals ( INO) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Inovio Pharmaceuticals as such a stock due to the following factors:

  • INO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.8 million.
  • INO has traded 126,564 shares today.
  • INO is trading at 2.18 times the normal volume for the stock at this time of day.
  • INO is trading at a new low 3.07% 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.

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More details on INO:

Inovio Pharmaceuticals, Inc., together with its subsidiaries, discovers, develops, and develops synthetic vaccines and immune therapies focusing on cancers and infectious diseases. Currently there are 5 analysts that rate Inovio Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Inovio Pharmaceuticals has been 1.4 million shares per day over the past 30 days. Inovio has a market cap of $621.5 million and is part of the health care sector and drugs industry. The stock has a beta of 3.85 and a short float of 20.7% with 12.46 days to cover. Shares are down 10% 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 Inovio Pharmaceuticals as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$8.15 million or 50.29% 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 Biotechnology industry and the overall market, INOVIO PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 1.3% when compared to the same quarter one year prior, going from -$10.85 million to -$10.71 million.
  • The stock price has risen over the past year, but it has underperformed the S&P 500 so far. 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.
  • INOVIO PHARMACEUTICALS INC has improved earnings per share by 20.8% 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, INOVIO PHARMACEUTICALS INC reported poor results of -$1.40 versus -$0.56 in the prior year. This year, the market expects an improvement in earnings (-$0.66 versus -$1.40).

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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