AMAG Pharmaceuticals (AMAG) Strong On High Relative Volume Today

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

  • AMAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • AMAG has traded 938,892 shares today.
  • AMAG is trading at 129.10 times the normal volume for the stock at this time of day.
  • AMAG is trading at a new high 21.01% 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.

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More details on AMAG:

AMAG Pharmaceuticals, Inc. develops and commercializes specialty pharmaceutical products. Currently there are 2 analysts that rate AMAG Pharmaceuticals a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for AMAG Pharmaceuticals has been 304,000 shares per day over the past 30 days. AMAG has a market cap of $500.2 million and is part of the health care sector and drugs industry. The stock has a beta of 0.52 and a short float of 33.4% with 21.16 days to cover. Shares are down 6.2% year-to-date as of the close of trading on Friday.

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 AMAG Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

Highlights from the ratings report include:
  • AMAG's revenue growth trails the industry average of 43.7%. Since the same quarter one year prior, revenues rose by 26.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 242.03% to $0.84 million when compared to the same quarter last year. In addition, AMAG PHARMACEUTICALS INC has also vastly surpassed the industry average cash flow growth rate of 101.98%.
  • AMAG's debt-to-equity ratio of 0.85 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 10.68 is very high and demonstrates very strong liquidity.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, AMAG PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, AMAG 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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.

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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