Accelerate Diagnostics (AXDX) Highlighted As Weak On High Volume

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

  • AXDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • AXDX has traded 54,563 shares today.
  • AXDX is trading at 5.76 times the normal volume for the stock at this time of day.
  • AXDX is trading at a new low 4.09% 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 AXDX:

Accelerate Diagnostics, Inc., an in vitro diagnostics company, focuses on developing and commercializing solutions for the diagnosis of serious infections. The company is developing ID/AST System, a rapid diagnostic platform for the diagnosis of infectious pathogens.

The average volume for Accelerate Diagnostics has been 129,600 shares per day over the past 30 days. Accelerate has a market cap of $1.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.32 and a short float of 29.8% with 19.98 days to cover. Shares are up 39.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Accelerate Diagnostics 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 and weak operating cash flow.

Highlights from the ratings report include:
  • ACCELERATE DIAGNOSTICS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, ACCELERATE DIAGNOSTICS INC reported poor results of -$0.71 versus -$0.42 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Life Sciences Tools & Services industry. The net income has significantly decreased by 71.0% when compared to the same quarter one year ago, falling from -$5.20 million to -$8.90 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 Life Sciences Tools & Services industry and the overall market, ACCELERATE DIAGNOSTICS 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 -$6.96 million or 89.57% 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 gross profit margin for ACCELERATE DIAGNOSTICS INC is currently very high, coming in at 100.00%. AXDX has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, AXDX's net profit margin of -63550.00% significantly underperformed when compared to the industry average.

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