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

  • QGEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.0 million.
  • QGEN has traded 274,186 shares today.
  • QGEN is trading at 4.59 times the normal volume for the stock at this time of day.
  • QGEN is trading at a new low 6.01% 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 QGEN:

QIAGEN N.V. provides sample to insight solutions that transform biological samples into valuable molecular insights worldwide. QGEN has a PE ratio of 88. Currently there are 4 analysts that rate Qiagen a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Qiagen has been 952,700 shares per day over the past 30 days. Qiagen has a market cap of $6.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.16 and a short float of 2.5% with 3.51 days to cover. Shares are up 12% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Qiagen as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.51, which clearly demonstrates the ability to cover short-term cash needs.
  • QIAGEN NV's earnings per share declined by 21.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, QIAGEN NV increased its bottom line by earning $0.49 versus $0.28 in the prior year. This year, the market expects an improvement in earnings ($1.09 versus $0.49).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.0%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for QIAGEN NV is currently very high, coming in at 73.54%. Regardless of QGEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.86% trails the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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