Strong On High Volume: Infinity Pharmaceuticals (INFI)

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

  • INFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.2 million.
  • INFI has traded 65,262 shares today.
  • INFI is trading at 2.62 times the normal volume for the stock at this time of day.
  • INFI is trading at a new high 3.09% 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.

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

More details on INFI:

Infinity Pharmaceuticals, Inc., a drug discovery and development company, discovers, develops, and delivers medicines to patients with difficult-to-treat diseases. Currently there are 6 analysts that rate Infinity Pharmaceuticals a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Infinity Pharmaceuticals has been 700,600 shares per day over the past 30 days. Infinity has a market cap of $600.8 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 11% with 4.27 days to cover. Shares are down 27.2% year-to-date as of the close of trading on Friday.

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 Infinity Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income 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 120.7% when compared to the same quarter one year ago, falling from -$42.27 million to -$93.30 million.
  • INFINITY PHARMACEUTICALS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, INFINITY PHARMACEUTICALS INC continued to lose money by earning -$0.45 versus -$2.64 in the prior year. For the next year, the market is expecting a contraction of 665.5% in earnings (-$3.45 versus -$0.45).
  • 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, INFINITY PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, INFI's share price has jumped by 27.60%, 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 INFI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • INFI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.

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

Stocks Seek Direction Amid a Rise in Bond Yields, Strong Earnings

Stocks Seek Direction Amid a Rise in Bond Yields, Strong Earnings

4 Stocks Making Important Moves Wednesday

4 Stocks Making Important Moves Wednesday

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook Prepares for Earnings and 4 Other Stories You Must Know Wednesday

Facebook Prepares for Earnings and 4 Other Stories You Must Know Wednesday