Strong On High Relative Volume: Insys Therapeutics (INSY)

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

  • INSY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.2 million.
  • INSY has traded 72,057 shares today.
  • INSY is trading at 2.51 times the normal volume for the stock at this time of day.
  • INSY is trading at a new high 4.01% 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.

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

More details on INSY:

Insys Therapeutics, Inc., a commercial-stage specialty pharmaceutical company, develops and commercializes supportive care products. It focuses on utilizing its proprietary formulation technologies to address the clinical shortcomings of existing commercial pharmaceutical products. INSY has a PE ratio of 21.5. Currently there are 2 analysts that rate Insys Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Insys Therapeutics has been 511,900 shares per day over the past 30 days. Insys has a market cap of $1.2 billion and is part of the health care sector and drugs industry. Shares are up 40.3% 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 Insys Therapeutics as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:
  • INSY's very impressive revenue growth greatly exceeded the industry average of 43.1%. Since the same quarter one year prior, revenues leaped by 195.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • INSY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, INSY has a quick ratio of 2.49, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for INSYS THERAPEUTICS INC is currently very high, coming in at 89.28%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, INSY's net profit margin of 16.99% significantly trails the industry average.
  • INSYS THERAPEUTICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, INSYS THERAPEUTICS INC turned its bottom line around by earning $1.17 versus -$0.78 in the prior year. For the next year, the market is expecting a contraction of 7.4% in earnings ($1.08 versus $1.17).

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

Stocks Slide on Renewed Trade War Concerns

Stocks Slide on Renewed Trade War Concerns

PTC Shares Skyrocket on Positive Data for Spinal Muscular Atrophy Drug

PTC Shares Skyrocket on Positive Data for Spinal Muscular Atrophy Drug

Tesla Slumps After Mary McCormack Tweets Husband's Flaming Model S

Tesla Slumps After Mary McCormack Tweets Husband's Flaming Model S

Stocks Dive Globally as U.S.-China Trade War Intensifies

Stocks Dive Globally as U.S.-China Trade War Intensifies

China Trade War, Google, JD.com, Tesla, Brooks Koepka - 5 Things You Must Know

China Trade War, Google, JD.com, Tesla, Brooks Koepka - 5 Things You Must Know