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

  • XOMA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
  • XOMA has traded 1.1 million shares today.
  • XOMA is trading at 3.18 times the normal volume for the stock at this time of day.
  • XOMA is trading at a new low 3.04% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in XOMA with the Ticky from Trade-Ideas. See the FREE profile for XOMA NOW at Trade-Ideas

More details on XOMA:

XOMA Corporation discovers and develops antibody-based therapeutics in the United States, Europe, and the Asia Pacific. Currently there are 5 analysts that rate XOMA a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for XOMA has been 2.1 million shares per day over the past 30 days. XOMA has a market cap of $457.1 million and is part of the health care sector and drugs industry. The stock has a beta of 3.88 and a short float of 25.9% with 8.36 days to cover. Shares are up 19.2% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates XOMA as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

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 363.4% when compared to the same quarter one year ago, falling from -$4.69 million to -$21.72 million.
  • XOMA has underperformed the S&P 500 Index, declining 22.14% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The revenue fell significantly faster than the industry average of 22.2%. Since the same quarter one year prior, revenues fell by 22.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has increased to -$24.28 million or 13.90% when compared to the same quarter last year. Despite an increase in cash flow of 13.90%, XOMA CORP is still growing at a significantly lower rate than the industry average of 156.02%.
  • XOMA CORP has improved earnings per share by 9.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, XOMA CORP continued to lose money by earning -$0.67 versus -$1.40 in the prior year. This year, the market expects an improvement in earnings (-$0.63 versus -$0.67).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers