ISIS Pharmaceuticals (ISIS) Weak On High Volume

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

  • ISIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $138.6 million.
  • ISIS has traded 339,274 shares today.
  • ISIS is trading at 2.40 times the normal volume for the stock at this time of day.
  • ISIS is trading at a new low 4.06% 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 ISIS:

Isis Pharmaceuticals, Inc. engages in the discovery and development of antisense drugs using novel drug discovery platform. ISIS has a PE ratio of 464. Currently there are 3 analysts that rate ISIS Pharmaceuticals a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for ISIS Pharmaceuticals has been 1.9 million shares per day over the past 30 days. ISIS has a market cap of $7.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.97 and a short float of 14.5% with 6.19 days to cover. Shares are down 0.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ISIS Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.4%. Since the same quarter one year prior, revenues rose by 11.5%. 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 company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Biotechnology industry and the overall market, ISIS PHARMACEUTICALS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • ISIS PHARMACEUTICALS INC's earnings per share declined by 30.4% in the most recent quarter compared to the same quarter a year ago. 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, ISIS PHARMACEUTICALS INC continued to lose money by earning -$0.35 versus -$0.53 in the prior year. For the next year, the market is expecting a contraction of 98.6% in earnings (-$0.70 versus -$0.35).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has significantly decreased by 34.1% when compared to the same quarter one year ago, falling from -$26.68 million to -$35.78 million.

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