Agios Pharmaceuticals (AGIO): Today's Weak On High 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 Agios Pharmaceuticals ( AGIO) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Agios Pharmaceuticals as such a stock due to the following factors:

  • AGIO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.2 million.
  • AGIO has traded 286,491 shares today.
  • AGIO is trading at 15.09 times the normal volume for the stock at this time of day.
  • AGIO is trading at a new low 11.04% 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 AGIO:

Agios Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics in the field of cancer metabolism and rare genetic disorders of metabolism in the United States. Currently there are 2 analysts that rate Agios Pharmaceuticals a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Agios Pharmaceuticals has been 622,900 shares per day over the past 30 days. Agios has a market cap of $4.5 billion and is part of the health care sector and drugs industry. Shares are up 8.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Agios Pharmaceuticals as a sell. Among the areas we feel are negative, one of the most important has been the company's poor growth in earnings per share.

Highlights from the ratings report include:
  • AGIOS PHARMACEUTICALS reported significant earnings per share improvement in the most recent quarter compared to 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, AGIOS PHARMACEUTICALS reported poor results of -$1.59 versus -$1.06 in the prior year. For the next year, the market is expecting a contraction of 33.0% in earnings (-$2.12 versus -$1.59).
  • 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, AGIOS PHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has slightly increased to -$25.59 million or 5.38% when compared to the same quarter last year. Despite an increase in cash flow of 5.38%, AGIOS PHARMACEUTICALS is still growing at a significantly lower rate than the industry average of 152.56%.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 59.5% when compared to the same quarter one year prior, rising from -$12.25 million to -$4.96 million.
  • This stock has increased by 213.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in AGIO do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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