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

  • TROV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
  • TROV has traded 143,922 shares today.
  • TROV is trading at 4.74 times the normal volume for the stock at this time of day.
  • TROV is trading at a new low 6.08% 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 TROV:

Trovagene, Inc., a molecular diagnostic company, focuses on the development and commercialization of proprietary urine-based cell-free molecular diagnostic technology for use in disease detection and monitoring across various medical disciplines. Currently there are 4 analysts that rate TrovaGene a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for TrovaGene has been 471,700 shares per day over the past 30 days. TrovaGene has a market cap of $325.0 million and is part of the health care sector and drugs industry. The stock has a beta of -0.69 and a short float of 3.1% with 1.22 days to cover. Shares are up 209.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates TrovaGene 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, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • TROVAGENE 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, TROVAGENE INC reported poor results of -$0.76 versus -$0.71 in the prior year. For the next year, the market is expecting a contraction of 35.5% in earnings (-$1.03 versus -$0.76).
  • 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 Biotechnology industry. The net income has significantly decreased by 124.9% when compared to the same quarter one year ago, falling from -$3.19 million to -$7.17 million.
  • Net operating cash flow has significantly decreased to -$4.73 million or 69.15% 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 TROVAGENE INC is rather low; currently it is at 15.75%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, TROV's net profit margin of -5648.81% significantly underperformed when compared to the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, TROVAGENE INC's return on equity significantly trails that of both the industry average and the S&P 500.

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