Intra-Cellular Therapies (ITCI) Is Strong 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 Intra-Cellular Therapies ( ITCI) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Intra-Cellular Therapies as such a stock due to the following factors:

  • ITCI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.8 million.
  • ITCI has traded 50,799 shares today.
  • ITCI is trading at 6.07 times the normal volume for the stock at this time of day.
  • ITCI is trading at a new high 3.02% 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 ITCI:

Intra-Cellular Therapies, Inc., a biopharmaceutical company, discovers and develops small molecule drugs for the treatment of neuropsychiatric and neurologic disorders within the central nervous system (CNS). Currently there are 7 analysts that rate Intra-Cellular Therapies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Intra-Cellular Therapies has been 226,000 shares per day over the past 30 days. Intra-Cellular has a market cap of $1.0 billion and is part of the health care sector and drugs industry. Shares are up 89.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Intra-Cellular Therapies as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, ITCI's share price has jumped by 49.39%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • ITCI 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 16.12, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to other companies in the Pharmaceuticals industry and the overall market, INTRA-CELLULAR THERAPIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • INTRA-CELLULAR THERAPIES 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, INTRA-CELLULAR THERAPIES INC reported poor results of -$1.10 versus -$0.36 in the prior year. For the next year, the market is expecting a contraction of 170.9% in earnings (-$2.98 versus -$1.10).
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 390.6% when compared to the same quarter one year ago, falling from -$4.54 million to -$22.29 million.

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