Strong On High Relative Volume: Dyax (DYAX)

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

  • DYAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.4 million.
  • DYAX has traded 73,919 shares today.
  • DYAX is trading at 2.48 times the normal volume for the stock at this time of day.
  • DYAX is trading at a new high 3.32% 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 DYAX with the Ticky from Trade-Ideas. See the FREE profile for DYAX NOW at Trade-Ideas

More details on DYAX:

Dyax Corp., a biopharmaceutical company, identifies, develops, and commercializes treatments for hereditary angioedema (HAE) and plasma kallikrein-mediated (PKM) angioedemas. The company offers KALBITOR for the treatment of acute attacks of HAE. Currently there are 4 analysts that rate Dyax a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Dyax has been 1.0 million shares per day over the past 30 days. Dyax has a market cap of $1.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.60 and a short float of 7.2% with 7.82 days to cover. Shares are up 76.1% 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 Dyax as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:
  • The gross profit margin for DYAX CORP is currently extremely low, coming in at 9.45%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, DYAX's net profit margin of -3.71% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly increased by 117.69% to $0.42 million when compared to the same quarter last year. Despite an increase in cash flow, DYAX CORP's average is still marginally south of the industry average growth rate of 119.00%.
  • DYAX's debt-to-equity ratio of 0.78 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 11.11 is very high and demonstrates very strong liquidity.
  • Compared to other companies in the Biotechnology industry and the overall market, DYAX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • This stock has increased by 67.55% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in DYAX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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

Oil Slips From Three-Year Peak After Trump Tweets Anger at OPEC

Oil Slips From Three-Year Peak After Trump Tweets Anger at OPEC

GE Beats Earnings Estimates and 4 Other Stories You Must Know Friday Morning

GE Beats Earnings Estimates and 4 Other Stories You Must Know Friday Morning

Global Stocks Hit by Asia Tech Weakness, Oil Price Rally; U.S. Futures Slip

Global Stocks Hit by Asia Tech Weakness, Oil Price Rally; U.S. Futures Slip

General Electric, Honeywell, Wells Fargo and Qualcomm - 5 Things You Must Know

General Electric, Honeywell, Wells Fargo and Qualcomm - 5 Things You Must Know

Ericsson Rockets After Solid Q1 Following Cevian Push to Accelerate Turnaround

Ericsson Rockets After Solid Q1 Following Cevian Push to Accelerate Turnaround