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

  • IMMU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • IMMU has traded 396,855 shares today.
  • IMMU is trading at 7.70 times the normal volume for the stock at this time of day.
  • IMMU is trading at a new high 6.22% 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 IMMU:

Immunomedics, Inc., a biopharmaceutical company, focuses on the development of monoclonal antibody-based products for the targeted treatment of cancer, autoimmune, and other diseases in the United States. Currently there are 3 analysts that rate Immunomedics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Immunomedics has been 821,400 shares per day over the past 30 days. Immunomedics has a market cap of $378.5 million and is part of the health care sector and drugs industry. The stock has a beta of -1.35 and a short float of 18.4% with 16.48 days to cover. Shares are down 9.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Immunomedics as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk.

Highlights from the ratings report include:
  • IMMUNOMEDICS INC's earnings per share declined by 18.2% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, IMMUNOMEDICS INC reported poor results of -$0.41 versus -$0.15 in the prior year. For the next year, the market is expecting a contraction of 24.4% in earnings (-$0.51 versus -$0.41).
  • 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 decreased by 23.7% when compared to the same quarter one year ago, dropping from -$9.51 million to -$11.76 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, IMMUNOMEDICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$10.81 million or 69.99% 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 18.04 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 11.81, which shows the ability to cover short-term cash needs.

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