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

  • MDVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $121.1 million.
  • MDVN has traded 95,871 shares today.
  • MDVN is trading at 2.37 times the normal volume for the stock at this time of day.
  • MDVN 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 MDVN:

Medivation, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies to treat serious diseases in the United States. It offers XTANDI for the treatment of post-chemotherapy metastatic castration-resistant prostate cancer (mCRPC) patients. MDVN has a PE ratio of 76.9. Currently there are 10 analysts that rate Medivation a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Medivation has been 1.1 million shares per day over the past 30 days. Medivation has a market cap of $8.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.73 and a short float of 5.8% with 3.09 days to cover. Shares are up 69.8% 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 Medivation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • MDVN's very impressive revenue growth greatly exceeded the industry average of 40.9%. Since the same quarter one year prior, revenues leaped by 234.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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, MEDIVATION INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 47.08% is the gross profit margin for MEDIVATION INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 38.90% is above that of the industry average.
  • Net operating cash flow has significantly increased by 539.20% to $19.77 million when compared to the same quarter last year. In addition, MEDIVATION INC has also vastly surpassed the industry average cash flow growth rate of 117.01%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 685.8% when compared to the same quarter one year prior, rising from -$13.31 million to $77.99 million.

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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