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

  • PTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • PTN has traded 2.9 million shares today.
  • PTN is trading at 93.93 times the normal volume for the stock at this time of day.
  • PTN is trading at a new high 17.00% 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 PTN:

Palatin Technologies, Inc., a biopharmaceutical company, develops peptide therapeutics for the treatment of diseases. Currently there are 4 analysts that rate Palatin Technologies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Palatin Technologies has been 102,400 shares per day over the past 30 days. Palatin has a market cap of $37.9 million and is part of the health care sector and drugs industry. The stock has a beta of -0.39 and a short float of 2.4% with 0.29 days to cover. Shares are up 37% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Palatin Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from the ratings report include:
  • The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • PTN has underperformed the S&P 500 Index, declining 18.92% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for PALATIN TECHNOLOGIES INC is currently lower than what is desirable, coming in at 29.30%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 34.62% trails the industry average.
  • 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, PALATIN TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • PALATIN TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PALATIN TECHNOLOGIES INC continued to lose money by earning -$0.12 versus -$0.25 in the prior year. This year, the market expects an improvement in earnings (-$0.12 versus -$0.12).

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