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

  • RIGL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.0 million.
  • RIGL has traded 158,691 shares today.
  • RIGL is trading at 2.01 times the normal volume for the stock at this time of day.
  • RIGL is trading at a new high 3.17% 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 RIGL:

Rigel Pharmaceuticals, Inc., a clinical-stage drug development company, engages in the discovery and development of small-molecule drugs for the treatment of inflammatory and autoimmune diseases, immuno-oncology related diseases, and muscle disorders. Currently there is 1 analyst that rates Rigel Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Rigel Pharmaceuticals has been 1.3 million shares per day over the past 30 days. Rigel has a market cap of $349.0 million and is part of the health care sector and drugs industry. The stock has a beta of 2.08 and a short float of 2.6% with 1.63 days to cover. Shares are up 74.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Rigel Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity 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 underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has significantly decreased by 32.1% when compared to the same quarter one year ago, falling from -$16.86 million to -$22.27 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, RIGEL PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RIGEL PHARMACEUTICALS INC's earnings per share declined by 31.6% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, RIGEL PHARMACEUTICALS INC reported poor results of -$1.03 versus -$1.01 in the prior year. This year, the market expects an improvement in earnings (-$0.91 versus -$1.03).
  • Compared to its closing price of one year ago, RIGL's share price has jumped by 46.54%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in RIGL do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • Net operating cash flow has increased to -$15.05 million or 20.31% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.72%.

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