Biocryst Pharmaceuticals (BCRX) Is Today's Strong 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 Biocryst Pharmaceuticals ( BCRX) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Biocryst Pharmaceuticals as such a stock due to the following factors:

  • BCRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.5 million.
  • BCRX has traded 171,676 shares today.
  • BCRX is trading at 6.09 times the normal volume for the stock at this time of day.
  • BCRX is trading at a new high 4.02% 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 BCRX:

BioCryst Pharmaceuticals, Inc., a biotechnology company, designs, optimizes, and develops small molecule drugs that block key enzymes involved in the pathogenesis of diseases. Currently there are 5 analysts that rate Biocryst Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Biocryst Pharmaceuticals has been 873,800 shares per day over the past 30 days. Biocryst has a market cap of $917.4 million and is part of the health care sector and drugs industry. The stock has a beta of 4.36 and a short float of 27.9% with 14.24 days to cover. Shares are up 4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Biocryst Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.

Highlights from the ratings report include:
  • BIOCRYST PHARMACEUTICALS INC's earnings per share declined by 23.5% in the most recent quarter compared to 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, BIOCRYST PHARMACEUTICALS INC reported poor results of -$0.68 versus -$0.55 in the prior year. For the next year, the market is expecting a contraction of 49.3% in earnings (-$1.02 versus -$0.68).
  • 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 49.6% when compared to the same quarter one year ago, falling from -$10.14 million to -$15.16 million.
  • Despite currently having a low debt-to-equity ratio of 0.47, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.22 is sturdy.
  • Compared to other companies in the Biotechnology industry and the overall market, BIOCRYST PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 58.41% to -$3.73 million when compared to the same quarter last year. Despite an increase in cash flow of 58.41%, BIOCRYST PHARMACEUTICALS INC is still growing at a significantly lower rate than the industry average of 155.59%.

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