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

  • SUPN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.3 million.
  • SUPN has traded 147,160 shares today.
  • SUPN is trading at 6.03 times the normal volume for the stock at this time of day.
  • SUPN is trading at a new low 9.01% 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.

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

More details on SUPN:

Supernus Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States. SUPN has a PE ratio of 41.4. Currently there are 3 analysts that rate Supernus Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Supernus Pharmaceuticals has been 638,300 shares per day over the past 30 days. Supernus has a market cap of $619.8 million and is part of the health care sector and drugs industry. The stock has a beta of 0.82 and a short float of 6.1% with 3.97 days to cover. Shares are up 59.6% year-to-date as of the close of trading on Tuesday.

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 Supernus Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:
  • SUPN's very impressive revenue growth greatly exceeded the industry average of 11.1%. Since the same quarter one year prior, revenues leaped by 198.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.33, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for SUPERNUS PHARMACEUTICALS INC is currently very high, coming in at 93.33%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, SUPN's net profit margin of 14.13% significantly trails the industry average.
  • SUPERNUS PHARMACEUTICALS INC reported significant earnings per share improvement 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SUPERNUS PHARMACEUTICALS INC turned its bottom line around by earning $0.19 versus -$2.92 in the prior year. For the next year, the market is expecting a contraction of 31.6% in earnings ($0.13 versus $0.19).
  • Powered by its strong earnings growth of 115.38% and other important driving factors, this stock has surged by 55.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.

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

Global Stocks Ease as Investors Focus on Dollar, Oil, Italy After US-China Truce

Global Stocks Ease as Investors Focus on Dollar, Oil, Italy After US-China Truce

Replay: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Replay: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Charlie Gasparino Says GE Is Reportedly Looking to Slash Its Dividend Again

Charlie Gasparino Says GE Is Reportedly Looking to Slash Its Dividend Again