Senomyx (SNMX) Stock: Weak On High Volume Today

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

  • SNMX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • SNMX has traded 293,106 shares today.
  • SNMX is trading at 16.12 times the normal volume for the stock at this time of day.
  • SNMX is trading at a new low 10.01% 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 SNMX:

Senomyx, Inc. discovers, develops, and commercializes flavor ingredients for the packaged food, beverage, and ingredient supply industries using proprietary taste receptor-based assays and screening technologies. Currently there are 2 analysts that rate Senomyx a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Senomyx has been 306,700 shares per day over the past 30 days. Senomyx has a market cap of $299.0 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.24 and a short float of 18.2% with 16.64 days to cover. Shares are up 23% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • 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 Chemicals industry and the overall market, SENOMYX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SNMX has underperformed the S&P 500 Index, declining 16.09% 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 change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Chemicals industry average. The net income has decreased by 3.3% when compared to the same quarter one year ago, dropping from -$2.64 million to -$2.73 million.
  • SNMX, with its decline in revenue, slightly underperformed the industry average of 10.6%. Since the same quarter one year prior, revenues fell by 15.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • SENOMYX INC reported flat earnings per share in the most recent quarter. 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, SENOMYX INC continued to lose money by earning -$0.28 versus -$0.30 in the prior year. For the next year, the market is expecting a contraction of 7.1% in earnings (-$0.30 versus -$0.28).

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