Trade-Ideas: Repligen (RGEN) Is Today's Weak On High Relative Volume Stock

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

  • RGEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • RGEN has traded 137,588 shares today.
  • RGEN is trading at 10.02 times the normal volume for the stock at this time of day.
  • RGEN is trading at a new low 16.37% 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 RGEN:

Repligen Corporation, a life sciences company, develops, manufactures, and markets consumable bioprocessing products for use in the production of monoclonal antibodies and other biologic drugs. RGEN has a PE ratio of 158. Currently there are 3 analysts that rate Repligen a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Repligen has been 352,300 shares per day over the past 30 days. Repligen has a market cap of $1.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.92 and a short float of 10.4% with 9.20 days to cover. Shares are up 63.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Repligen as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 38.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RGEN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.94, which clearly demonstrates the ability to cover short-term cash needs.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Biotechnology industry average. The net income increased by 27.8% when compared to the same quarter one year prior, rising from $2.83 million to $3.61 million.
  • Net operating cash flow has significantly increased by 219.60% to $7.42 million when compared to the same quarter last year. In addition, REPLIGEN CORP has also vastly surpassed the industry average cash flow growth rate of -79.03%.
  • The gross profit margin for REPLIGEN CORP is rather high; currently it is at 65.32%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, RGEN's net profit margin of 16.83% significantly trails the industry average.

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