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

  • ALNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $118.0 million.
  • ALNY has traded 140,394 shares today.
  • ALNY is trading at 2.91 times the normal volume for the stock at this time of day.
  • ALNY is trading at a new low 3.07% 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 ALNY:

Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes novel therapeutics based on RNA interference. Currently there are 8 analysts that rate Alnylam Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Alnylam Pharmaceuticals has been 783,900 shares per day over the past 30 days. Alnylam has a market cap of $10.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.86 and a short float of 8.1% with 4.61 days to cover. Shares are up 32.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Alnylam Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • ALNY's very impressive revenue growth greatly exceeded the industry average of 21.6%. Since the same quarter one year prior, revenues leaped by 124.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ALNY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 13.35, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to -$26.26 million or 37.00% when compared to the same quarter last year. Despite an increase in cash flow of 37.00%, ALNYLAM PHARMACEUTICALS INC is still growing at a significantly lower rate than the industry average of 152.56%.
  • ALNYLAM PHARMACEUTICALS INC 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALNYLAM PHARMACEUTICALS INC reported poor results of -$5.14 versus -$1.43 in the prior year. This year, the market expects an improvement in earnings (-$2.99 versus -$5.14).
  • 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, ALNYLAM PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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