Amicus Therapeutics (FOLD) Strong On High Relative 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 Amicus Therapeutics ( FOLD) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Amicus Therapeutics as such a stock due to the following factors:

  • FOLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.7 million.
  • FOLD has traded 297,848 shares today.
  • FOLD is trading at 4.39 times the normal volume for the stock at this time of day.
  • FOLD is trading at a new high 7.00% 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 FOLD:

Amicus Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for various rare and orphan diseases. Currently there are 3 analysts that rate Amicus Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Amicus Therapeutics has been 1.9 million shares per day over the past 30 days. Amicus has a market cap of $1.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.14 and a short float of 16.3% with 3.52 days to cover. Shares are up 29.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Amicus Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and poor profit margins.

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 73.4% when compared to the same quarter one year ago, falling from -$12.24 million to -$21.22 million.
  • Net operating cash flow has significantly decreased to -$14.51 million or 78.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for AMICUS THERAPEUTICS INC is currently extremely low, coming in at 0.00%. Despite the low profit margin, it has increased significantly from the same period last year.
  • 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, AMICUS THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • FOLD, with its very weak revenue results, has greatly underperformed against the industry average of 21.4%. Since the same quarter one year prior, revenues plummeted by 100.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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