Enzon Pharmaceuticals (ENZN) Is Today's Strong 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.

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

  • ENZN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
  • ENZN has traded 693,454 shares today.
  • ENZN is trading at 4.26 times the normal volume for the stock at this time of day.
  • ENZN is trading at a new high 8.33% 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.

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More details on ENZN:

Enzon Pharmaceuticals, Inc. engages in licensing drug products. Its marketed drug products include PegIntron for chronic hepatitis C; Sylatron for melanoma; Macugen for neovascular (wet) age-related macular degeneration; and CIMZIA for the treatment of rheumatoid arthritis and Crohn's disease. ENZN has a PE ratio of 2.1.

The average volume for Enzon Pharmaceuticals has been 2.4 million shares per day over the past 30 days. Enzon has a market cap of $59.6 million and is part of the health care sector and drugs industry. The stock has a beta of 1.78 and a short float of 0.1% with 0.01 days to cover. Shares are up 23.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Enzon Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 51.68% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.
  • ENZON PHARMACEUTICALS INC has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, ENZON PHARMACEUTICALS INC increased its bottom line by earning $0.65 versus $0.39 in the prior year.
  • The revenue fell significantly faster than the industry average of 21.4%. Since the same quarter one year prior, revenues fell by 15.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 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, ENZON PHARMACEUTICALS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 5.8% when compared to the same quarter one year prior, going from $5.48 million to $5.80 million.

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