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

  • AGEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.5 million.
  • AGEN has traded 387,072 shares today.
  • AGEN is trading at 3.63 times the normal volume for the stock at this time of day.
  • AGEN is trading at a new low 3.12% 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 AGEN:

Agenus Inc., an immunotherapy company, engages in discovering and developing innovative treatments for patients with cancer and other diseases. Its treatments focus on providing therapeutic benefit through modulation of immune function. Currently there are 4 analysts that rate Agenus a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Agenus has been 1.7 million shares per day over the past 30 days. Agenus has a market cap of $699.1 million and is part of the health care sector and drugs industry. The stock has a beta of -0.50 and a short float of 11.2% with 3.27 days to cover. Shares are up 146.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • 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 2842.2% when compared to the same quarter one year ago, falling from -$0.64 million to -$18.74 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 Biotechnology industry and the overall market, AGENUS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • AGENUS 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. 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, AGENUS INC continued to lose money by earning -$0.67 versus -$1.15 in the prior year. For the next year, the market is expecting a contraction of 20.9% in earnings (-$0.81 versus -$0.67).
  • Net operating cash flow has significantly increased by 132.54% to $3.30 million when compared to the same quarter last year. Despite an increase in cash flow, AGENUS INC's cash flow growth rate is still lower than the industry average growth rate of 155.59%.
  • AGEN's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.90, which clearly demonstrates the ability to cover short-term cash needs.

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