TG Therapeutics (TGTX) Is Weak On High 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 TG Therapeutics ( TGTX) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified TG Therapeutics as such a stock due to the following factors:

  • TGTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.0 million.
  • TGTX has traded 88,946 shares today.
  • TGTX is trading at 3.58 times the normal volume for the stock at this time of day.
  • TGTX is trading at a new low 3.01% 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 TGTX:

TG Therapeutics, Inc., a biopharmaceutical company, focuses on the acquisition, development, and commercialization of various pharmaceutical products for the treatment of cancer and other underserved therapeutic needs. Currently there are 4 analysts that rate TG Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for TG Therapeutics has been 528,000 shares per day over the past 30 days. TG has a market cap of $635.3 million and is part of the health care sector and drugs industry. The stock has a beta of 3.40 and a short float of 12.2% with 2.97 days to cover. Shares are up 349% 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 TG Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

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 significantly decreased by 283.0% when compared to the same quarter one year ago, falling from -$4.56 million to -$17.45 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, TG THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$8.05 million or 597.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • TG THERAPEUTICS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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, TG THERAPEUTICS INC continued to lose money by earning -$0.81 versus -$2.74 in the prior year. For the next year, the market is expecting a contraction of 69.1% in earnings (-$1.37 versus -$0.81).
  • The revenue growth greatly trails the industry average of 41.1%. Since the same quarter one year prior, revenues have remained constant. Even though the company's revenue remained stagnant, the earnings per share decreased.

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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