Adamas Pharmaceuticals (ADMS) Weak On High Volume

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

  • ADMS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.2 million.
  • ADMS has traded 86,080 shares today.
  • ADMS is trading at 2.17 times the normal volume for the stock at this time of day.
  • ADMS is trading at a new low 3.15% 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 ADMS with the Ticky from Trade-Ideas. See the FREE profile for ADMS NOW at Trade-Ideas

More details on ADMS:

Adamas Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of therapeutics targeting chronic disorders of the central nervous systems in the United States. ADMS has a PE ratio of 46. Currently there are 2 analysts that rate Adamas Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Adamas Pharmaceuticals has been 125,000 shares per day over the past 30 days. Adamas has a market cap of $475.0 million and is part of the health care sector and drugs industry. Shares are up 53.4% 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 Adamas Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, ADMS's share price has jumped by 38.13%, exceeding the performance of the broader market during that same time frame.
  • ADMS's revenue growth has slightly outpaced the industry average of 22.2%. Since the same quarter one year prior, revenues rose by 28.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to other companies in the Biotechnology industry and the overall market, ADAMAS PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ADAMAS PHARMACEUTICALS 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. For the next year, the market is expecting a contraction of 648.1% in earnings (-$2.96 versus $0.54).
  • 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 91.3% when compared to the same quarter one year ago, falling from -$6.38 million to -$12.20 million.

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

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

To Win at Trade the U.S. Must Act and Behave Like China

To Win at Trade the U.S. Must Act and Behave Like China

Video: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Video: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Apple Shares Gain as U.S. and China Call Off Trade War, For Now

Apple Shares Gain as U.S. and China Call Off Trade War, For Now

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec