Five Prime Therapeutics (FPRX) Stock: 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 Five Prime Therapeutics ( FPRX) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Five Prime Therapeutics as such a stock due to the following factors:

  • FPRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.1 million.
  • FPRX has traded 98,817 shares today.
  • FPRX is trading at 6.94 times the normal volume for the stock at this time of day.
  • FPRX is trading at a new low 3.00% 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.

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More details on FPRX:

Five Prime Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of protein therapeutics that block cancer and inflammatory disease processes. Currently there are 3 analysts that rate Five Prime Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Five Prime Therapeutics has been 285,900 shares per day over the past 30 days. Five Prime has a market cap of $603.5 million and is part of the health care sector and drugs industry. Shares are down 5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Five Prime Therapeutics as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 74.22% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 21.5%. Since the same quarter one year prior, revenues rose by 21.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, FIVE PRIME THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • FIVE PRIME THERAPEUTICS INC's earnings per share improvement from the most recent quarter was slightly positive. 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, FIVE PRIME THERAPEUTICS INC reported poor results of -$1.80 versus -$1.33 in the prior year. For the next year, the market is expecting a contraction of 3.3% in earnings (-$1.86 versus -$1.80).
  • 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 27.3% when compared to the same quarter one year ago, falling from -$8.64 million to -$11.00 million.

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