CytRx (CYTR) 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.

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

  • CYTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.6 million.
  • CYTR has traded 383,335 shares today.
  • CYTR is trading at 4.26 times the normal volume for the stock at this time of day.
  • CYTR is trading at a new low 5.22% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CYTR with the Ticky from Trade-Ideas. See the FREE profile for CYTR NOW at Trade-Ideas

More details on CYTR:

CytRx Corporation operates as a biopharmaceutical research and development company specializing in oncology. Currently there are 3 analysts that rate CytRx a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for CytRx has been 1.0 million shares per day over the past 30 days. CytRx has a market cap of $206.2 million and is part of the health care sector and drugs industry. The stock has a beta of 1.15 and a short float of 22.1% with 4.92 days to cover. Shares are up 35% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CytRx 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, poor profit margins 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 475.7% when compared to the same quarter one year ago, falling from $4.67 million to -$17.53 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, CYTRX CORP'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 -$12.63 million or 82.64% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for CYTRX CORP is currently extremely low, coming in at 0.00%. CYTR has continued with the weak profit margin when compared to the same quarter of last year.
  • CYTRX CORP 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, CYTRX CORP continued to lose money by earning -$0.54 versus -$1.35 in the prior year. For the next year, the market is expecting a contraction of 62.0% in earnings (-$0.88 versus -$0.54).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

The Winners and Losers in Thursday's Market

The Winners and Losers in Thursday's Market

Stocks Tumble as Dow Heads for Eighth Straight Drop

Stocks Tumble as Dow Heads for Eighth Straight Drop

Online Retailers Hit by Supreme Court Ruling Requiring Sales Tax Collection

Online Retailers Hit by Supreme Court Ruling Requiring Sales Tax Collection

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers