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

  • RPTP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.6 million.
  • RPTP has traded 275,816 shares today.
  • RPTP is trading at 2.66 times the normal volume for the stock at this time of day.
  • RPTP is trading at a new high 8.03% 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 RPTP:

Raptor Pharmaceutical Corp., a biopharmaceutical company, focuses on developing and commercializing life-altering therapeutics that treat debilitating and often fatal diseases. Currently there are 3 analysts that rate Raptor Pharmaceutical a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Raptor Pharmaceutical has been 1.4 million shares per day over the past 30 days. Raptor has a market cap of $671.5 million and is part of the health care sector and drugs industry. The stock has a beta of 0.44 and a short float of 24.6% with 10.23 days to cover. Shares are down 7.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Raptor Pharmaceutical as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally high debt management risk 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 56.5% when compared to the same quarter one year ago, falling from -$12.09 million to -$18.92 million.
  • Net operating cash flow has significantly decreased to -$10.83 million or 132.47% 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 debt-to-equity ratio is very high at 2.45 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 5.45, which shows the ability to cover short-term cash needs.
  • RAPTOR PHARMACEUTICAL CORP's earnings per share declined by 45.0% in the most recent quarter compared to 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, RAPTOR PHARMACEUTICAL CORP continued to lose money by earning -$0.83 versus -$1.22 in the prior year. For the next year, the market is expecting a contraction of 5.4% in earnings (-$0.88 versus -$0.83).
  • 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, RAPTOR PHARMACEUTICAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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