Trade-Ideas: Opexa Therapeutics (OPXA) Is Today's Weak On High Relative Volume Stock

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

  • OPXA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • OPXA has traded 408,075 shares today.
  • OPXA is trading at 2.43 times the normal volume for the stock at this time of day.
  • OPXA is trading at a new low 5.34% 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 OPXA:

Opexa Therapeutics, Inc., a biopharmaceutical company, develops personalized immunotherapy to treat multiple sclerosis (MS) and other autoimmune diseases, such as neuromyelitis optica (NMO) based on its proprietary T-cell technology.

The average volume for Opexa Therapeutics has been 1.4 million shares per day over the past 30 days. Opexa has a market cap of $28.0 million and is part of the health care sector and drugs industry. The stock has a beta of 2.05 and a short float of 1.1% with 0.05 days to cover. Shares are down 27.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Opexa Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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, OPEXA THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • OPXA's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 65.36%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 8.3% when compared to the same quarter one year prior, going from -$3.66 million to -$3.35 million.
  • The gross profit margin for OPEXA THERAPEUTICS INC is currently very high, coming in at 100.00%. OPXA has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, OPXA's net profit margin of -888.85% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly increased by 94.32% to -$0.22 million when compared to the same quarter last year. Despite an increase in cash flow of 94.32%, OPEXA THERAPEUTICS INC is still growing at a significantly lower rate than the industry average of 152.56%.

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