ANI Pharmaceuticals (ANIP) Stock: 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.

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

  • ANIP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.9 million.
  • ANIP has traded 76,201 shares today.
  • ANIP is trading at 6.90 times the normal volume for the stock at this time of day.
  • ANIP is trading at a new low 9.09% 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 ANIP:

ANI Pharmaceuticals, Inc., an integrated specialty pharmaceutical company, develops, manufactures, and markets branded and generic prescription pharmaceuticals. It manufactures oral solid dose products, as well as liquids and topicals, narcotics, and potent products. ANIP has a PE ratio of 24.3. Currently there is 1 analyst that rates ANI Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for ANI Pharmaceuticals has been 324,300 shares per day over the past 30 days. ANI has a market cap of $717.7 million and is part of the health care sector and drugs industry. The stock has a beta of 3.79 and a short float of 18.6% with 6.16 days to cover. Shares are up 11.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ANI Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • In comparison to the other companies in the Pharmaceuticals industry and the overall market, ANI PHARMACEUTICALS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • ANIP's very impressive revenue growth greatly exceeded the industry average of 11.1%. Since the same quarter one year prior, revenues leaped by 99.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 420.00% and other important driving factors, this stock has surged by 96.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Net operating cash flow has significantly increased by 474.90% to $10.74 million when compared to the same quarter last year. In addition, ANI PHARMACEUTICALS INC has also vastly surpassed the industry average cash flow growth rate of -44.88%.
  • ANIP's debt-to-equity ratio of 0.79 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 14.08 is very high and demonstrates very strong liquidity.

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