AtriCure (ATRC) Weak On High Volume Today

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

  • ATRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.3 million.
  • ATRC has traded 142,615 shares today.
  • ATRC is trading at 18.93 times the normal volume for the stock at this time of day.
  • ATRC is trading at a new low 5.08% 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 ATRC:

AtriCure, Inc., a medical device company, provides atrial fibrillation solutions worldwide. Currently there are 7 analysts that rate AtriCure a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for AtriCure has been 202,400 shares per day over the past 30 days. AtriCure has a market cap of $623.8 million and is part of the health care sector and health services industry. The stock has a beta of 1.43 and a short float of 11.6% with 10.55 days to cover. Shares are up 9.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AtriCure 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 and unimpressive growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, ATRC's share price has jumped by 53.83%, 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.
  • ATRC's revenue growth trails the industry average of 34.8%. Since the same quarter one year prior, revenues rose by 22.9%. 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.
  • The gross profit margin for ATRICURE INC is currently very high, coming in at 75.19%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -15.01% is in-line with the industry average.
  • ATRICURE 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 two years. We anticipate that this should continue in the coming year. During the past fiscal year, ATRICURE INC reported poor results of -$0.63 versus -$0.56 in the prior year. For the next year, the market is expecting a contraction of 30.1% in earnings (-$0.82 versus -$0.63).
  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 81.7% when compared to the same quarter one year ago, falling from -$2.69 million to -$4.89 million.

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