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

  • ILMN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $247.8 million.
  • ILMN has traded 1.3 million shares today.
  • ILMN is trading at 5.93 times the normal volume for the stock at this time of day.
  • ILMN is trading at a new high 6.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 ILMN:

Illumina, Inc. provides sequencing and array-based solutions for genetic analysis in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. ILMN has a PE ratio of 45. Currently there are 10 analysts that rate Illumina a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Illumina has been 2.0 million shares per day over the past 30 days. Illumina has a market cap of $22.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.18 and a short float of 3.7% with 3.54 days to cover. Shares are down 15.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Illumina as a hold. 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 and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 14.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.57, 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 3.17, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ILLUMINA INC is currently very high, coming in at 70.43%. Regardless of ILMN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ILMN's net profit margin of 21.47% compares favorably to the industry average.
  • ILMN has underperformed the S&P 500 Index, declining 16.97% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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